Well, I was dreading it but the time has come.

One of my grade 2 pupils wants to play the awful (in my opinion) Bah-ba-doo-bah for her exam. Having said that, she is playing it very well with a good rhythm and can do almost the whole piece from memory. My question is how should it be played in the exam? At the end of the 2nd line there is a repeat mark, and the bottom of the piece has DC al fine, so the piece ends at the second line. I always get confused about ABRSM's different rules about when to play repeats and when not to play them. Should we repeat lines 1 and 2 before playing lines 3 and 4, and then go back and play lines 1 and 2 with repeat again? Or should we just go straight through, ignoring the repeat at the end of line 2, so the piece would become lines 1-2-3-4-1-2 ? I guess playing lines 1-2-1-2-3-4-1-2-1-2 would make it too long.