K.B.
I would tell her exactly what you just told us. You already have her on a good schedule with 2 people watching her and a third person (besides her parents) would be too much. Offer her to come and visit or take her to the park for an hour or two whenever she'd like but you already have sitters and you'll let her know if you need her in the future to babysit.
Does your mother-in-law watch her 1 day a week because she wants to spend time with her or because the other sitter can't watch her more than 3 days a week? If possible, I'd have the sitter watch her more often since she's doing such a great job with her. Family members can visit your daughter and take her out for ice cream or something whenever they'd like.
Either way, if the system isn't broken don't try to fix it, so to speak. Be honest. Raising your child the best way you feel is right comes before worrying if you hurt someone's feelings. I'm sure your SIL will be fine with it especially if you offer her other options to spend time with your daughter.
K. B
mom to 5 including triplets