I think if this was you're automatic reaction to the teacher, perhaps you had already been considering it. The teacher prob can help fix this but my opinion is you need to look long term, ie what is most important - a child happy and motivated at school, who is likely by your description of the school will be appropriately challenged or a child who gets to graduate k a year early.
I removed dd from preschool to unschool for a year, she has just entered school at k level and will be reassessed for placement in a month, the school has already indicated this will be favourable. So far it was the best decision I have ever made.
Ask your Dd what she wants, she may be relieved at the suggestion rather than feeling like a failure.
