TripleB let's break it down:

You have a highly intelligent child spinning their wheels in second grade.
They need more challenging material and sound like they can not only cope with that but will do well with appropriate work.
The school is advocating a grade skip.
Your child is easy going and happy and the school thinks he will be fine.
As parents you are anxious and looking for the possible downsides. That is not unreasonable but don't let that overwhelm all the positives.
He is skipping the rest of second grade and from your comments, he already knows that work.
It is highly likely he already knows the third grade work. You can check. The teachers can run through the material he has missed with him.
You are concerned about the end of year test but I am not sure what the import of a third grade test is? We don't have that here. Is it really so bad IF he didn't do well. That is a big IF because he still has many months to work up to it.

Our DD skipped into third grade halfway through second. The biggest problem is that the work still wasn't challenging. You may be over rating what third grade entails.

What happens if you don't skip? That isn't a neutral position so make sure you see the negatives in staying put. Are they as scary as the potential downsides of moving forward.

Take a deep breath and get the teachers to run through the third grade material with both you and your son in a meeting. Then you have an idea of whether it will actually be a problem.