This is a very interesting predicament Reverend Smith is faced with. I feel as missionaries we must be sensitive to the surrounding culture while maintaining strong faith in our mission. Lily has a lot at risk with her decision of baptism as a public statement of her faith, but she risks the loss and rejection of her family, ostracism, and persecution.
I believe that Reverend Smith should offer to talk with Lily and her parents together so she can share her testimony with her parents. Lily’s testimony is also the reason for the change in her life and the acknowledgement of Christ and how that has transformed her. I think he should also discuss the impact this may have on her while providing scriptures that support her decision and that support her, her new found faith, and spiritual growth.
Ultimately the decision is Lily but Reverend Smith has to understand the culture and that the parents make most decisions until their children are married.