The best thing to do is to contact the school's administrators, or school principal and sit down with them to discuss your options. It is very upsetting to have this happen, but it is common. Especially coming from some southern schools to some northern schools. There are times where if a child can pass the SOL's in the district, he/she may be able to enter the grade they are supposed to. Some schools have remedial classes that she may be able to take while she is waiting to take her state SOL's. You could also try your states board of education.
It all really depends on the school district's rules and regulations. There are also places like Kumon and Sylvan that may be able to help her catch up. The best thing to do is get them to make you understand how this happened, and how the situation can be corrected. Most important is making sure you daughter understands that she is not at fault for any of this!