Bunnies are either terrified for a reason, or the reason may be that they just aren't used to people and don't know how to interact with them. You need to give her space and time, but still spend as much time as you can on a daily basis with her, so that her confidence grows and she comes to see you as something positive and good in her life, not something to be scared of and a threat to her. Some time and space now, will no doubt ensure a happy, confident bunny in the future, but constantly trying to pick her up, and scaring her could mean that you end up with a bunny who is forever fearful of you. I don't personally think the 'hands on' approach is a good approach, and that it will make her get used to being picked up etc. All it will do is reinforce that she is indeed right, and that you are something to be very scared off, and she will find ways to retreat more and more into herself.
One of my bunnies had become so traumatised that he ended up spending 5 months:shock: in the darkest corner of his hutch, totally terrified of anything and everything, and his outlook seemed to be, that he wasn't even sure life was for him, and it just broke my heart this little bun, and I literally cried when I went to meet him for the first time. He didn't eat in front of people or take food from people, and gradually just got into the habit of biting and attacking people on a daily basis, so as to avoid any interaction, but it was all fear based.
Fortunately, your bunny does not appear to be in such a bad place as this bunny was, but very frightened, scared bunnies can be pushed if you like, into such extreme behaviour if not managed appropriately. My tactics for him were to completely challenge his way of thinking, and in some ways even confuse him a little, which sounds unkind, but at least provoked some thought and tactics for himself instead of just being terrified and hiding. As previously an outdoors bun he was bought indoors, he didn't have a hutch to hide in, but he did have lots of hidey places, bunny tent, boxes, pop-up toy sacks laid on their sides, and you have to work on their natural curiosity and hope that it will overcome their fear, which fortunately for me it did. I wore a couple of jumpers I wasn't overly bothered about keeping, and then put them in his fav places to hang out, so he got used to my smell in a non-threatening way, and each day I placed favourite things he liked to eat on them, thereby enforcing that myself, my smell was a good thing and meant good, yummy things. It was only a matter of days before I was able to go into him, say his name, and he would run up to me, ok, it was only to get something nice to eat, but it was still his choice to come to me, not me chasing him, and it was already a massive improvement that suddenly this bunny was an 'out and about' bunny, he did things, investigated things, not only took food from me, but ate it in front of me, he had a life, he seemed to be starting to enjoy his life, and do you know, bunnies like this are often the most challenging but rewarding bunnies ever. In some respects, anyone can go and buy if they want a really cute baby bunny that everyone loves, but that person hasn't actually done anything for that bunny, but when I watch my bunny now 7 months later, binky like mad most days, throw himself down in a dead bunny flop, get madly excited when I go into his room, and he is just alive with happiness at seeing me, and right at the front of his enclosure dancing about, and he lets me pick him up, and sometimes dozes of in my arms and chatters his teeth with contentment, that is just an amazing feeling, because you have done that for that bunny and turned his thinking around and helped him become the happy bunny he is now.