Inspiron 660s: Hard Drive Failure. Need Advice Please.

Long story short my sister gave me an Inspiron 660s that she received as a gift a few years ago (fully legit).  She said it wasn't working anymore and I could have it.  I suspected a failed hard drive and after several diagnostic tests later it was confirmed the the original WD Blue had crashed; full failure. Now here is where I need advice:

1. When she received it it did not come with a physical Windows 8.0 OS disk.  It was pre-installed and then later upgrading via her work's IT department  to 8.1.

2. I cannot access the Windows code as it is in the BIOS.

3. I have a working laptop hard drive with Windows 7 installed and tried hooking it up to see if it would take realizing that this was a long shot at best.  As you probably concluded it wasn't recognized.

4. I was thinking of wiping one of my hard drives and doing a clean install of Windows 10.

Question: With a new hard drive (or possibly an SSD) would #4 work or would I still have issues with the BIOS and embedded Windows product code?

Question: What would you suggest that I should try?  It is a Nice small system and everything is clean and stable.  I have someone who is in need of a system but cannot afford one and I thought I would give her something that would meet her needs.

Thanks.