Do they have the authority to remove her from the program without "due process" (meeting with you/her, intervention, etc.)? In my state, gifted is under Special Education, so parents and students have rights.

How old or what grade is your daughter? Is she old enough for above level testing (SCAT, EXPLORE, etc.) to help argue your points?

Consider pink's idea of skipping, even this late in the year, it might be a good fit.