。
She waved her hand to greet him.
Literal
She [topic-は] hand [object-を] waving him [object-を] welcomed.
手を振る (to wave one's hand) is a set expression used for greetings and farewells alike. 迎える (むかえる) means to welcome or greet someone arriving. The て-form 振って connects the waving with the welcoming as simultaneous or immediately sequential actions — she greeted him by waving.