Possibly not number 3, though, because it really is just wrong, I'm afraid.

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Outside of a dog, a book is a man's best friend. Inside of a dog it's too dark to read.Groucho Marx

With the first one, the word in bold can't be replaced by your daughter's choice though can it? It would read "she took refuge TO... " instead of "she took refuge IN...".
I would also have assumed that was incorrect (though am happy to be advised they are not that prescriptive?)

I agree yes, but in terms of looking at the word in bold, albeit in the context of what was written, I'd have thought that to retreat somewhere, could be argued as being similar to taking refuge somewhere. And given we are talking about a 10 year old here...it does seem harsh to simply mark it wrong, without any explanation or half way merit!

As for the Bougainvillea question, the question asked what did the children think it might be..in the context of what was written. 'The white walls of the veranda...the bougainvillea hung about it..in livid balloons'...and she thought of hanging baskets of flowers, which to be fair is not too far off track for a 10 year old? Some of the kids wrote 'decorations', and one child thought it was a scary animal.... am guessing there were no half marks awarded there either