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We are using level 3 dictation in Bigger now. (We are about 3/4 done with it, but won't finish the level before we finish Bigger.)

Do we continue using level 3 dictation in Preparing or do we move onto level 4?

You would just continue on in Level 3 wherever you left off as the spelling is taught incrementally. Sometimes dc finish half of a level, and sometimes more or less of it than that. They move at a pace that is fitting their needs, so your child would just continue to finish out Level 3 next year, and whenever she finishes it, she'd start Level 4.

In Christ,
Julie

Thanks!