I would have another conversation with your principal and tell him you're concerned that your dd is not challenged enough to grow one full year academically, which she is entitled to do. How can she grow if she's already getting 100s?

I would ask them to do the IAS, but also see if she can test on end of year subjects for 2nd and 3rd grades to see where her best academic placement might be.

You should probably also hunt around the Davidson data base for ideas and recommendations on creating a positive relationship with the administration, successful advocating and the benefits of grade skipping.