SHE was a victim of one of the most shocking attacks on an international agency's headquarters during the war in Iraq last year.

But thanks to her family and Heriot-Watt University, her alma mater, Fiona Watson's legacy lives on.

Yesterday, the first beneficiary of her memorial fund was announced in Edinburgh, in the hope that more talented young Scots would continue the humanitarian work she loved so much.

The 35-year-old political analyst and linguist, from Fife, was four years into a blossoming career with the United Nations when the building in Baghdad where she was working was bombed by a suicide truck packed with explosives in August last year.

After the death of Ms Watson, her parents and Heriot-Watt set up the Fiona Watson Memorial Fund, to ensure that other talented young Scots have the same type of opportunity to work for an international humanitarian organisation that she enjoyed.

Gemma Tracey, who graduated with a first-class honours degree in languages and the Watt Club medal in July, was revealed yesterday as the winner of a (pounds) 3500 award after securing a placement at the UN's peacekeeping unit at its New York headquarters.

Hamish Watson, Miss Watson's brother, spoke for the family, saying that they were delighted for Miss Tracey. He said: ''My parents and I are pleased to think that by taking up this placement in the UN peacekeeping unit, Gemma is following in Fiona's footsteps.

''We are very grateful to all who have supported the fund and to the university, and we would wish Gemma well for her future.''

Miss Tracey, who is from Jemimaville in Easter Ross, flies out to New York next Tuesday and will begin her internship later this month.

All her travel and living costs will be covered by the money from the memorial fund.

She will work for three months as an intern at the UN headquarters, where she hopes to be involved in a number of aspects of the unit's work, gaining valuable experience of agency projects and building a platform for her career.

Miss Tracey said she was thrilled and honoured to have been given the bursary. She said: ''I feel very privileged, but I do feel very nervous - especially since I'm going in the memory of someone very talented and who did very well in her career.

''I'm looking forward to meeting lots of people from different backgrounds and seeing how the UN works. It's going to be very interesting.''

Sandy Richardson, head of development at Heriot-Watt University, said: ''We are delighted that just a year after Fiona's tragic death, with the support of her family, friends and colleagues, we have created an opportunity like this.

''But we are keen for the fund to continue to grow, and anyone who wishes to can make a donation through our website,'' he added.

Miss Watson had been working in Iraq for two months and was killed less than 48 hours after arriving back in Baghdad from a holiday, which included a visit to her family's home in Pittenweem, in the East Neuk of Fife.

At her funeral, Andrew Watson, her father, described his daughter as ''an extremely bright, gifted, beautiful, loving girl who cared for people.''

He added: ''She had so many friends all over the world. This was Fiona's dream job. She loved what she was doing. We're all terribly upset.''

In 1987, Ms Watson went to Heriot-Watt University and graduated with an honours degree in translation and interpretation.

She later continued her studies with an MPhil from Cambridge University in industrial relations and ballistic studies.