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If you mean Rani from Sarah Jane Adventures then she's likely alive. If you mean THE Rani, the Time Lady who appeared as a foe for the Sixth and Seventh Doctors then she's most probably dead but who knows? Other Time Lords have returned in some way or another.
And if it's the actors you're asking about, both Kate O'Mara (The Rani) and Anjli Mohindra (Rani Chandra) were alive and well at last report.