Do you think this kid is highly intelligent?

My niece, Carlie can now read and she's just two and half years old. That didn't surprise us much because most of the kids in our family starts to read before we turn three. So most of us skips pre-school, and kinder. One of my cousins skipped 1st and 2nd grade. (Our parents kinda made it a rule to teach us to read early. I remember my father taking advantage of it. We went to this mini-store and my father is friends with the owner. That friend of his caught me staring into a box that says "swirl" and it's really colorful and have pictures of candies. "She's reading it", my father said. He said his friend give him a you-are-kidding look. "If she's able to read what it says, give her a box of it." My father challenged. The owner said deal and I think he thought dad isn't serious. I remember spelling it first before reading the whole word and my dad and I went home carrying three boxes of that candy. :) Funny how I could recall all that.) But as I remember, I can only read three to five-letter words when I was that age and I don't understand what i'm reading at all. But her, she's already reading complex things. I handed her a bible the other day and let her read about Esau and Jacob. Also, she's an early talker and she can form complex sentences. Just this afternoon, she asked me what a birthright is and I was stunned. She remembered that?! Then I told her what it means and she said, "I don't like Esau, he surrendered something so important just for a stew (she remembered that too...). But I don't like Jacob either, he had taken advantage of his brother, plus, he deceived his father as well, and his mother helped him on that." (Of course we're talking in our language. English is not our native tongue.) Then I asked her, "If you're Jacob, what would you do instead?" Then she answered, "I'd give him the stew free of charge." She gave me this smile and added, "And if I'm their mother, Jacob wouldn't be my favorite. I won't have a favorite at all, because it's not good." After that, I don't have much to say. I think she's way advanced for her age, but what do you think? Is it exceptional or a lot of kids these days are like that?