I'm going to agree with CFK. It sounds like your DD was not yet ready for the grade skip. I'm actually surprised that the school would suggest it without achievement test data to back it up. Yes, she may well need a grade skip in the future. Yes, it is important to learn how to struggle a bit, but since we are talking about a fulltime GT program, 1st grade is not likely to be a complete waste of time. One of the difficulties for GT kids is that they may be ready for more complicated work, but not the workload that goes with those grades. Asking a 6 year-old to do the work for a 2nd grade gifted class (that sounds like it's doing 3-4th grade work) is probably asking too much.
Beware of damaging your DD's love of learning, love of school, and her confidence. It might be different if you were at a regular public school or a school where you know that it would be hard to advocate for a grade skip later. Clearly that is not the case here. If the school initiated the skip in the first place, I'm sure that they will be willing to do it down the road when your DD is ready.
Just my $0.02.
Hope everything works out.
