It's interesting: we also live in a district where "the average IQ in our school district is 115." "Everyone is challenged at his/her level." But once we obtained the two magical pieces of data-IQ and achievement scores-for DD, the school realized that DD might actually needs something different.
This sounds oddly familiar to me too.
Prepare a lot of material but be prepared to not pull it out unless it appears they don't have any ideas?
This gets my vote. You could leave the door open with "I'd like to consider these options and meet again." That would give you time to mull over what they are offering and come back with a strong case for something else if necessary.
