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Referrals Agent to agent-How would you handle this situation?

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Real Estate Agent with Keller Williams Realty
If you are receiving this, please respond to the following question. How do you define referral? Explanation- I have an agent that wants a referral for a client of mine that lives where I do that I have known for 12 years. I live in Coastal North Carolina (New Bern) and so does my client. I had gone out with my client already to see homes and the next meeting we had one of her friends called and wanted a referral for working with her The agent lives in Northern Virginia that is about 350 miles from me and my client. My client works at the same school that my children attended, could call me and my children by name and knew where I lived. I have several clients at that school that had recommended me as an agent. I love to do referrals and have done them on several occasions. I have three transactions that are referrals that I am working with currently, but have never had a situations like this. How would you handle this? Just looking for input from fellow agents