Originally Posted by happymom1122
I am wondering if skipping grade is the best option for the gifted.
Every case is different. The Iowa Acceleration Scale (IAS) is a tool made to help evaluate the appropriateness of full-grade acceleration. As there is good and bad in everything, there are both pros and cons to acceleration. Many old threads discuss the ups and downs of acceleration. Here is a link to one thread which contains links to other threads on acceleration.

Originally Posted by happymom1122
It made me think skipping a grade may relieve some of the gap between her needs and the curriculum but not necessarily meet her needs.
This is a realistic view.

Originally Posted by happymom1122
we may move to the different state and may be able to find a gifted school for her next or following year.
Oft repeated advice is to do what is appropriate for the situation/circumstances/opportunities/needs NOW, and re-evaluate for aptness and fit each year.

Originally Posted by happymom1122
DD7 would be better to stay in her own grade level so she can work with the gifted kids with her own age peers.
Not necessarily. Gifted programs are not alike, and gifted peers are not alike. As with acceleration, a gifted program and being in the company of gifted peers may relieve some of the gap between her needs and the curriculum but not necessarily meet her needs.

The child's input is an important factor in their placement.