Incidentally, just for the sake of accuracy, I have recently discovered that it *is* possible to apply for British nationality abroad: you have to submit your application through the British consulate. *However* that does not exempt you from any of the requirements like time spent in Britain, good character, knowledge of English, knowledge of Life in the UK, etc. (Except that, on a very strange technicality, it does exempt you from needing to have ILR if, and only if, you're married to a British citizen and you've already been in the UK for 3 years).
This won't help in your case, because it means that your wife would still have to have 3 years residence in the UK, and she has stayed away too long already. I just mention it, because the information I gave earlier was not entirely correct, and it may help others.
In sum: for the most part, any successful application will have to be made in the UK as a de-facto result of the residence requirements. Technically, it is possible to apply at a consulate abroad; but there are only limited circumstances in which it would be beneficial to an application that was likely to be successful.
Edited by user
8 years ago
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Reason: Not specified