Thank you all for your support and sharing your wisdom.

Just a quick update. We did not go through any testing but I am a lot less concern about DD7's reading. She is now in 3G (skipped 2) and her new classroom is right next to the library. She spends nearly every recess there and while at school she reads ~300 pages - one Warriors book - per day! She is a fast reader, so hopefully that's what caused her to skip words and I was worried for nothing.