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Using a norm-referenced assessment is the most appropriate choice for comparing a student's knowledge with that of their peers in the same grade level. This type of assessment evaluates a student's performance relative to a predefined group, typically representing a sample of students from the same grade level or demographic. By analyzing scores in this manner, educators can gain insights into how a student's knowledge and skills measure up against those of their peers, identifying whether they fall below, at, or above the average performance level.

In contrast, criterion-referenced assessments focus on measuring a student's performance against a predetermined set of standards or objectives, rather than comparing them to the performance of peers. This approach is beneficial for understanding individual mastery of specific content or skills.

Performance-based assessments evaluate a student’s ability to apply knowledge and skills in real-world or practical situations, which can often yield a different focus than an overall comparative analysis among peers.

Diagnostic assessments are primarily used to identify a student's strengths and weaknesses in various areas, allowing teachers to tailor instruction accordingly. While they provide valuable insights for individualized learning, they do not focus on peer comparisons.

Overall, a norm-referenced assessment offers the best framework for comparing individual student performance relative to a broader peer group, making it the correct choice in this context.

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