Just to clear up my confusion, you asked for them to use outside testing (IQ and WJ) rather than the tests they normally give students (ITBS and CogAT)? Could you ask them to give her the ITBS and if that score is high enough, use it instead of the WJ?

I am not sure what is on the ITBS but I wonder if they are picking only the comprehension section of the WJ because the ITBS is a comprehension test?

If they resist, you should point out that she was unmedicated when she took the test so it's not a fair gauge of her abilities. They should be willing to re-test her with a different test medicated (and if they are not they are crazy and probably in violation of disability law).

I think the other portions of the WJ for reading are identifying single words, and also reading fluency which is timed and involves circling answers. If those things are not on the ITBS, it may be why they don't want to consider them. I know the computerized achevement test that my DD does in school only involves comprehension and vocabulary.