I've moved your post so that you can have your own thread.
the IAP agreed that she has a challenging transport issue
They may have agreed with your argument, but they were still entitled to take the view that the school's case for prejudice was stronger, and outweighed the case you put forward.
Does anyone have any advice as to what to do next?
I'm afraid there's nothing you can do, unless it can be shown that the panel did something incorrectly, and this caused an injustice.
You cannot challenge the panel's decision because you disagree with it - there would need to be a serious procedural error.http://www.elevenplusexams.co.uk/appeals/ombudsman