We were offered that option as well when my DD was accelerated into first grade. It was more of a safety net for the student/family. When I asked how many grade skips did not work out, the school gifted coordinator indicated that she did not know of any.
My DD was grade skipped after the first week in school, so she had already made K friends. However, when she was skipped to 1st Grade the next week, she made new friends very quickly and loved the change. DD just finished 3rd Grade, and I finally asked her if she had any regrets on the grade skip. There were no regrets at all. She was happy she did it.
Most schools do not offer the grade skip if they do not believe the child is ready. DD had to take four exams (six hours of testing in a single day) at 5 years old in order to skip. They required a 90% pass rate in all subjects (reading, math, science, and social studies). If your school is allowing the grade skip, then your DD should do just fine in the higher grade.
Good luck!
