Hi trout. I would agree with dottie in that the school sounds like they are really trying to help your DD. But, I also think that this is too much pressure to put on a 5yo who really belongs in the 1-3 group.

Can you ask if your DD is any different from the kids who will be graduating to the next level? Maybe it would help if they compared?

But if they refuse to budge and let her start in 1-3, I would do as dottie suggest and not follow the school's suggestion to not encourage your DD. I would plainly tell her that she belongs in 1-3, but because of school rules re: age, she has to ask to go to that room for a certain period of time. Tell her she has accomplished as much as the other kids who are age-appropriately graduating to the next level. Something like that.

Too bad there's always some tricky catch. Good luck!