。
She spread the rumor all over town.
Literal
She [topic-は] that rumor [object-を] throughout-town spread-around.
ふれ回る is a compound verb pairing 触れる ('touch / mention') with 回る ('go around'), giving 'go around touching/mentioning' — i.e., spread by word of mouth, broadcast widely. The verb carries a faint negative connotation of indiscretion; you 'ふれ回る' something you should perhaps have kept quieter. 町中 ('throughout the town') reads まちじゅう, with 中 here as the suffix じゅう ('throughout') rather than ちゅう ('during'). 中 has those two readings depending on what it follows: 一日中 ('all day long', じゅう) vs 仕事中 ('during work', ちゅう).