Would you hold your child back in first grade if the teacher thought it was in their best interest?

My daughter has had issues all year. Her behavior is great. But she struggles in reading and math. She’s already receiving intervention to try to get her where she needs to be. She was recently diagnosed with ADHD and anxiety disorder, but it was at the very end of the school year before we discovered she had these. She has done a bit better while taking medication for her issues, but her teacher still thinks it would benefit her more by retaining her a year and giving her a bit more time to soak up what she needs to know for second grade. Her handwriting skills are still poor. We are working hard at this. I just want to make sure I’m making the right decision. She is already upset about not getting to go forward with her friends.