I am wondering if there is an online reading assessment that will help you identify at what "grade-level" your child reads?

What is entailed in this?

When someone says my child reads at a fifth grade level....does that mean :

1)they read/pronounce correctly all words that a fifth grader would,
2)reads AND understands all words or can make good contextual guesses at what they mean,
3)reads AND understands words AND understands all the subtle nuances of story..grasps the meaning and motivations of characters and can figure out the moral of stories, or guess at plots..etc.


I am just trying to understand what is meant by grade level reading and hoping to better place my son and help him grow.

Thanks