。
She envies my good fortune.
Literal
She [topic-は] my good-fortune [object-を] is-envying.
羨む / うらやむ takes its object with を — the thing being envied. Distinct from 羨ましい, the i-adjective ('enviable'), which marks the speaker's own feeling: that something is enviable to them. 幸運 is Sino-Japanese for 'good luck / good fortune,' more weighty and literary than the everyday 運がいい. The ~ている here marks an ongoing emotional state — not a single act of envying, but a continued condition. A learner studying Japanese emotion vocabulary often runs into this split: 羨む (verb, what someone does), 羨ましい (adjective, how the speaker feels).