While your daughter did remarkably at the second grade level, the third grade test demonstrated she did not possess the knowledge to pass that test.You know, the numbers don't mean what some of you think they mean. Test that are designed to measure proficiency across a large range as well as beyond what should be taught will have numbers that don't work with the normal A-B-C-D-F scale. They are not meant to.
My oldest child took a number of test in 2nd grade that were actually 3rd grade test because he had already maxed out the 2nd grade scores. Sometimes he got 10/30 on the 3rd grade test. Some of you would believe that to be an F and would say that it is a failure.
The way such testing works is to set it such that it would be expected that a post high school education would be the bar for a perfect score, with questions above and beyond what should be taught. In this way, proficient is what the target is, and would be the A range. The two levels above that mean that students are learning more than is required, and doing better than the state's goals.
The point is, these test are not written for the level they are given, but beyond that. I have no doubt my second grader could have passed the 3rd grade test last year. I wouldn't expect him to get advanced on the 3rd grade test, but he would certainly pass it.
Sample tests are all on line on the Ohio Department of Education website, see for yourself the degree of difficulty these tests possess.