Your daughter should be fine, since she did not complete the course and has an opportunity to retake it. As a parent, I believe you have just reason to be worried, but you can rest easy after reading this post. As long as your daughter meets the PSAT cutoff, is involved in extracurriculars, maintains at least a 3.7 GPA she should be in prime position to receive the NMSQT scholarship. Just for the record, I am an Indian student and my parents were worried about my receiving the National Merit Scholarship because I made a high "B" in one class. In the end, they had nothing to worry about!