How old is she? I think you handled it well...did she tell you where she learned the word? If it makes you feel any better, the first time I heard that word was in grade 2. For some reason that I will never understand, I felt compelled to write it on the back counter of my classroom and then tell the teacher that 'someone' had written it there.

Not really sure what I was trying to accomplish - either in writing it down or in telling the teacher it was someone else. I had NO CLUE what it meant. The teacher knew who did it because of the printing style, and I got a talking to before I went home that day. I didn't want anything to do with that word for a very long time after that.