I don't know much about these reading tests. But I would talk with her teacher about teaching her the new-to-her vocabulary and retesting her. That might make all the difference in moving her to a better reading level.
In 2nd grade my son took a math pretest at the beginning of the year. Teacher told us our son did well and got 100% on everything but left all of the division problems blank. I was perplexed because I knew he knew how to divide. I took a look at the test and it was written using a nomenclature that DS had never seen. Once he understood the new symbol he was able to easily do all the division problems.
