Remember ... your child is your child... it should never ever matter what gender they are... also there really is no gender there is only a bell curve of what it is to be male or female...there are so many variations of phenotypical and hormonal and chromosomal people that there is no pure male or female.... we have feminine men and masculine women and many women become more male like after menopaus and many men become female like after losing testosterone as they grow older..   i said many not all.. there is not set stereotype of what a male is or a female and we all will change over the course of our own lives too.. just love the spirit and share that love while the spirit still has a body to be able to give you recognition that you love them because after they are gone they will be without a body and they will still love you but they won't be able to tell you so unless you are like a few who can and do relate to those on the other side.. jesus says let those who can hear hear   jesus could hear those from the other side. Thats why jesus wasn't scared of dying.

I commend you for coming HERE for advice.  You've come to the right place.  Why?  Transsexual people know far more than any medical professional every could about actually being transsexual ... unless they, themselves, are TS.

Everybody here has answered you so marvelously, especially JENNIFER and Kara.  Of particular importance, Kara said:

Its true. Your fears are logical. The problem is that they probably don't have a choice. The only way to live a life where you don't think the thoughts, "Why am I not a girl? Why was I born like this? This isn't real," All the time 24/7, is to just do it and be what your mind is pushing you to do. In the end, if you deny yourself, you become twice as miserable. If you deny who you are and what you feel like you should be, the pain will be exponentially worse than having a bigot make fun of you.

Your kid is going to have a rough time, but the alternative is a constant never-ending growth-stunted miserable life. They will likely walk this tough road no matter what is done to interfere with their progress. So walk it with them as a mother hand in hand with a quirky daughter, yet loving daughter nonetheless.

Wow.  Marvelous, marevlous advice, Kara!  Mom, there's your answer ... right there. 

These gals (female brains here, remember) have all offered you such fantastic insight.  Get knowledge here and apply it with love for your child.  I must say, however, that your child may take a while to overcome internal turmoil.  If he (she) were my child, at an appropriate time, I would mention that appropriately good manners are best for everyone, because they help us all get along well.  Just my two-cents worth.  Hope I haven't offended you in any way.

Good luck!

Hugs!