You need to provide unexpired police reports from all countries you've lived in for 12 months or longer since you were 16, unless the dvselectee website lists them as being unavailable. Are you certain that she said she will accept the expired one? Many people are in the same situation as you where they have not lived in a country for some years but in most instances you can still get a recently issued police report. Just because you repeatedly told her you didn't have the document doesn't change the fact that it is required.
I told first interviewer that my police report from my country has already expired and was made during 2009 so i didnot bring it and i am living in UK since 2009 so i have got police report from here.. and same thing i told my second interviewer as well but she told me thats fine but please send it to us..and she returned my passport and docts. I dont know if she meant toget recent police report from my country.. if thats the case then i wont be able to get it until i go back home.. its more confusing..