MN1 refused for daughter whilst BC granted for me

[Tee27]

Hello, my apologies if this answer has been addressed somewhere. I could not find it so I had to type this.

Background: I have had ILR status for about a year and half. My daughter was born in the United states and is currently 8 months old. When coming into the country, I simply used her American passport seeing as she could remain in the country for 6 months visa free. The immigration officer at the airport raised no objections as long and said to ensure I put in the appropriate application for her to live here in the UK as soon as possible.
Upon our return, I applied for British citizenship for myself and used the MN1 form (under section 3(1) for her application.
My application was granted yesterday and hers refused...the reason given as her not being "settled".
I find this surprising and wonder what to do next.
- Should I appeal this decision?
- Should I send in a fresh application - MN1 ?
- Should I apply for ILR for her as some friends are advising?

Note: The 6 months "free" period for her being here without needing a visa expired 5 days ago. If I appeal, would it be counted as a continuous period from the previous application and therefore not be that she overstayed or it does not work this way?

Thank you.

[CR001]

- Should I appeal this decision?

There are no 'appeal' rights for citizenship. Only a reconsideration request, which costs almost £300 and can take many months.

- Should I send in a fresh application - MN1 ?

Children born abroad usually require ILR first. What is the immigration status of the other parent?

- Should I apply for ILR for her as some friends are advising?

Yes. Set(F) form.

[Tee27]

- Should I appeal this decision?

There are no 'appeal' rights for citizenship. Only a reconsideration request, which costs almost £300 and can take many months.
Yes, I was actually referring to the reconsideration request not appeal. Thanks for the correction.

- Should I send in a fresh application - MN1 ?

Children born abroad usually require ILR first. What is the immigration status of the other parent?
Other parent is on Tier 2 visa but eligible for ILR in September this year.

- Should I apply for ILR for her as some friends are advising?

Yes. Set(F) form.

So, this is the best way forward? And how long would she have to remain on ILR before I can apply for her british citizenship? Would it be same 1 year duration as everyone else even under these circumstances of me being british now?

Thanks

[secret.simon]

For a Section 3(1) application, the child and the other parent are normally expected to have ILR, unless you have demonstrated sole responsibility.

So, do you have sole responsibility? If not, what is the UK immigration status of the other parent? Generally, the UK immigration status of children born abroad is in line with that of the less-privileged parent.

[CR001]

For a Section 3(1) application, the child and the other parent are normally expected to have ILR, unless you have demonstrated sole responsibility.

So, do you have sole responsibility? If not, what is the UK immigration status of the other parent?

Other parent is a Tier 2 General visa holder, eligible for ILR in September.

[CR001]

As the other parent does not hold ILR, it is unlikely your child will be successful with a citizenship application as one parent needs to apply for BC at the same time as child (holding ILR) and the other must be settled and hold ILR.

[secret.simon]

Your child will be eligible for ILR with the less-privileged parent and can be registered under Section 3(1) after both the child and the other parent have got ILR.

[Tee27]

Thanks for your speedy responses. Much appreciated.