We supposedly have standards based grading on a 1-4 scale, 4 being exceeds expectations. When DD was in second grade she was incredibly frustrated by a teacher who graded in a fashion similar to your DD's teacher. My very introverted, shy 2nd grader went to her teacher and asked why she only got a 3 on independent reading. She didn't understand how she could possibly be any more independent. The teacher responded that you couldn't get a 4 in that area because all of the gt kids in her class exceeded the standard so she was meeting the same standard as the rest of her class, hence a 3. ugh!