I can't give you an answer on the DYS question (that will depend on how your child actually scores), but it sounds like the child psych is administering both an IQ test and an above level achievement test. The first will tell you your child's capacity to learn, and the second will hone in on what your child has learned.

For my daughter's grade skips, both of these types of tests (as well as in-grade level achievement tests) were given.

Are you looking into a whole grade acceleration?
-S.F.

For gifted children, doing nothing is the wrong choice.