After reviewing the evidence, including body cam footage, the judge determined that "there was a powerful attempt to put words in the appellants mouth that would indicate that the incident was not a coincidence but an attempt to run over a police officer," Haaretz reported.
Maoud, whose father was an Israel Police officer, was driving quickly to get to her son's graduation party and was turned around by the checkpoints set up in the area, said the judge, according to Haaretz.
Police arrested 17 Palestinians in east Jerusalem during clashes this week amid high tensions surrounding the Jerusalem Flag March.
About 33 Palestinians were injured in the disturbances, Palestinian media reported.
Some 2,000 police officers and Border Police officers were deployed throughout the Old City on Tuesday, and metal barriers were erected to prevent Palestinians from reaching the Damascus Gate area.
Jeremy Sharon and Tzvi Joffre contributed to this report.