if you two file a join return, you can claim personal exemption for yourself and your spouse, she can choose to be resident alien status by filing joint return.
The Answer is YES.
Here are some requirements for doing this:
1. your spouse or children must have an Individual Taxpayer Identification Number (ITIN)
2. your children must meet these dependency tests.
3. your spouse cannot be claimed as a dependent on another U.S. taxpayer's return.
http://www.irs.gov/pub/irs-pdf/p501.pdf
This publication states the what is dependency test for your kid in details. Hope it makes sense for you.