That is so stupid. The teachers would be well within their rights to say she should master 100% of the skills before moving to a higher level, but that's completely different from getting 100% of the questions right 100% of the time. Only a computer can do that - people make mistakes, no matter how well they know the material.

I like your daughter's response for its spirit, but it might not be healthiest in the long run - trying to be perfect usually ends up driving one mad.