Dear H.,
That must be so hard for your daughter! Is there any way you can appeal the decision? Have you talked to her teacher and principal? You could point out the fact that someone with lower grades and lower ISTEP scores was accepted and your daughter was not, and ask for an explanation. That seems like a valid question, if grades and ISTEP scores are what count for getting into the new school. And remember, you pay the salaries of the school employees, through taxes, so they should answer your questions! (Not that you want to be nasty about it, but they do work for you)
Also, was your daughter sick on the day(s) of the tests? If so, maybe they could take that into account, or maybe let her re-take them.
Is there any way you could see her test, her answer sheet, and the correct answers? They can do this for the college tests (ACT and SAT) so you can see where you made your mistakes. She may have answered the questions right but filled in the oval for the wrong question; for instance, she put the answer for question 2 in the line for question 3, and then just got "off" from there. That would lower her score in a hurry. If that is what happened, maybe they could re-score her test or let her take it again.
If none of these work, you're back to trying to comforher. Unfortunately life is not always fair, and that sounds like a really lame excuse to give to a nine year old, but maybe it's the best you can do. By all means let her express her grief, and express yours too (appropriately--your feelings of sadness, disappointment IN THE SITUATION not in her, not bashing the "System" or the teachers or whoever). Reassure her that you love her because she is your child, regardless of where she goes to school, and that you have no doubt of her abilities. I don't know if your family believes in God or not, if you do, you could say that maybe this is part of God's plan for her, that "it was meant to be". (I would not say this until I had checked with school officials, thought! You don't want her to just blindly accept everything without question.)
If she ends up going to the regular school, maybe you could help her make friends by having a new friend come over for dinner or to spend time on the weekend. You can also offer her other enrichment activities outside of school, such as Scouts; music, dance, or art lessons; sports; the YWCA, etc. Also she may want to keep in touch with her friends from her current school, you could encourage that by having those friends over for dinner, etc.
Maybe she can get into a Magnet high school (if you have them) after middle school?
It is really hard for us parents to get to the point where we realize we can't fix everything that goes wrong in our kids' lives. I remember as a child realizing that my parents couldn't do it, and that was tough, but believe me, it is hundreds of times worse on the parent side!
I hope some of this helps. Sorry for running on a bit long. Good luck!
K. Z.
A little about me: I am 51, mom to 2 boys, 13 and 16; musician, and a substitute teacher. Married for 21 years, and a former resident of Indiana, which is where I think you are, judging from the reference to ISTEP!