1. She should've been concerned because he could possible break it and swallow it or swallow it whole. Maybe even possibly cut himself.
2. The agency could've rejected the request or accepted it and maybe provided a new rattle.
3. The center director could just toss it out, or (if careless enough) keep it. They could also repair the toy. The more appropriate option is to repair it.
4. At her son's age, the more appropriate toy would be mega blocks (another option could be a toy car that is too big to be swallowed.) The toy can promote being creative since you are building things by just connecting blocks together. The child could also use that as a starter of showing how they feel or a stress reliever (if they do get angry or sad) it could also just be another activity for them to do until they're worn out.