It's unfortunate that after all the trust that you have placed in this school, they have decided to use their "non-profit status subsidized by the taxpayers school" to take an action the sole purpose of which is to hurt your daughter. It was, and is, completely within their power to put the needs of the studetns first.

Study for that board exam so you can get a job somewhere new, and you can then frame this as the two of you striking out on a new adventure instead of you having failed.