It doesn't take getting perfect grades to be bored in class. In fact my son is very good at dong just the opposite. The more bored he is the worse his grades and assessments got.

I agree with HappilyMom, you should be focusing on how bored she is in school and not about the details of her "grades". One word on a spelling testing isn't going to make or break anything. Keep in mind that first grade assessments aren't really grades. It's a report to give you an idea how your child is doing next to a set of benchmarks. An S usually just means that a child has MET the standards they are expecting for a given point in the school year, and an 'O' would mean they exceed it. A class like science where there isn't a huge amount of assessment, the teacher might not give any O's. There isn't any prize for getting all 'O's in 1st grade.