Oh Cricket, I feel your pain. This has to be a hard position to be in. (I'm pretty sure I did this to my parents.)

Really, at this point, what are the options you have?
- DD could stay in the class, regardless.
- You could keep her in the class and communicate with the teacher on a daily basis so DD can't hide things. This could be ramped down as she improves her study skills.
- DD could be moved back to her other class.
- DD could be "sentenced" to EPGY.

Either of the last two options would separate her from her new friends, and not necessarily be the best fit educationally.

Maybe she needs to understand that she's putting you in this position and that if she wants to stay in the class with her friends, she needs to work for it. This may not work with your DD, but I know it will for some kids.

This is hard, but being challenged now will give her better study skills later on.