I'd say the important thing here is that your DD is in the right learning environment, with a teacher who is supportive of her placement. Whether the teacher fully understands WHY your DD is ready for all that is, IMHO, immaterial.
And I don't think she's really all that far off base, because truthfully, your DD would never have been able to advance to Algebra if she hadn't been working on pre-Algebra at home, because the school was directly inhibiting her progress. So basically, all the teacher has done is made an incorrect assumption that you were heavily involved in that.
