German Shepherd having breathing difficulties?

An elongated soft palate is a congenital deformity (they are born with it) so I wouldn't expect any antibiotics or inflammatories to help. There is no drug correction for the condition. There's no bacteria and no inflammation to control. It's a mechanical problem. The soft palate is actually extending into the airway which restricts how much air the dog can breath in. Depending on how severe it is, it can interfere with some of the anatomy if you want to get into detail (epiglottis, cartilages, etc). Think about if you had a kleenex wadded up in your windpipe that the air has to try to maneuver around to get to your lungs. It would make breathing difficult. Especially if you decide to exercise and need to take more breaths. The surgery would remove that kleenex so that the windpipe is completely open. The condition is more common in brachiocephalic breeds (smushed face dogs and cats) but can occur in any. You can get a second opinion, but it's pretty easy to diagnose. The only treatment to cure, that I know of, is the surgery. You can elect not to go for the surgery since it is expensive, but try to limit the activity of the dog. Walks are fine, but running for long periods isn't a very good idea. Just base it on how the dog responds. If she can't make it without badly wheezing on a mile walk, cut the length down until she's able to do the entire walk with about the same amount of rasping she has when she's resting at home.