Reading level of Lord of the Rings is far, far higher than anything even remotely connected to first or second grades.
Yes it is.
However, you might be surprised that some kids read way above grade level.
I know the reading level of the Lord of the Rings, but my daughter read it, with the Appendices, in the first grade. She liked the movies when they came out, but wished they had followed the books closer.
And yes, she often has had problems relating to her peers...