Earlier quoted context omitted.
It is ABSOLUTELY open for debate, and part of the clue is in the question "if she works just as fast" ie. the cutting rate is constant. Then, it is ambiguous since the SIZE of the pieces is not mentioned. It's not the teacher's fault, per se; the question is unanswerable. The student picked one interpretation but the (likely) correct one is shown in the answer http://math.stackexchange.com/a/380007
If it is ambiguous, there is no answer. There must be an answer. Therefore, it cannot be ambiguous. The answer given is the only one it is possible to give. Therefore, it must be the correct one. The context isn't so much "third grade" as it is "math test", and very, very few math tests allow "Question ill-formed as posed" as a valid answer. Maybe more should.
* (the feeder competition for the British Mathematics Olympiad, and then the International one)