"She smiles happily!"
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There is no tense in Chinese. The 了 does not make the sentence past tense. It actually has a lot of functions, and doesn't necessarily mean that she smiled happily in the past. It could also imply that there was a change of state because she was not smiling before. Sometimes it is even added just because a one-word verb in Chinese by itself just sounds wrong but not for any inherent reason.