[Kate*]

I don't think it's wrong to acknowledge what they said, but to focus on it too much or to make it sound, even without meaning to, like the student's beliefs are 'right' and others therefore would be 'wrong' because you happen to share their religious views. Maybe say something like, "It sounds like God/Jesus /religion is important to you and is something that keeps you from being afraid, and then ask the rest of the group "What are some other things we can use or do to help us not be afraid?" That way you haven't left the student hanging, but you aren't making it sound like she has the only right answer and possibly making other kids feel bad if they weren't raised to agree. It also steers you away from them starting a religion debate, but I don't think you have to worry too much about that with 7 year olds