3yo drink wine?

I went to my husband’s parents house for Christmas, they just moved to where we live so this is the first holiday we’ve had at their house with our child. His mom (74) poured my husband and I a glass of wine. Then she pulled out a small wine glass (about the size of a shot) and said directly to my 3yr old, “this is yours” and poured her a glass. She then asked my husband where she’d be sitting so she could put the glass where my girl was going to sit.

I shot an alarmed look at my husband and he (also surprised) said under his breath “I’m okay” as in these are my parents and they gave me wine when I was a kid and I’m okay. I was too shocked to speak but I knew in my mind I wasn’t going to let her have it. Luckily she had no desire to drink it. At the end of dinner my husband asked if we could ask if she wanted a sip, he said he was curious if she’d like it. I said no because she’s sick and on steroids so she really should not. When I said that everyone was like “oh wow no she should not”.

On the way home I said to my husband, what was that?! And he was like yeah I was surprised too but it’s not that big of a deal if she wasn’t sick. I said I might be overreacting but I’m not trying to get our 35lb 3yo accidentally drunk or give her alcohol poisoning. I didn’t want to seem dramatic so I didn’t push it. He did say hmm yeah, like he was thinking about it.

In the future, I assume this will happen again. I guess I’m okay allowing her a sip to try it but giving her a glass makes me uncomfortable. Am I overreacting? I feel like even a shot of wine is too much for a child so young.