My immediate response to the teacher's comment about the rarity of "truly gifted" kids would be, "Well, my daughter tested at an IQ of 133, so she's inarguably one of the truly gifted ones, thanks." And then when the question of the needs assessment came up, I'd say, "Ahhh... now I see where the flaw in the process is that's allowing in all these non-gifted kids you mentioned earlier. But since we've already established my DD's giftedness, we've established her need for a G/T program, so we don't really need to worry about this worksheet."