Well, before consenting to an induction, I'd be certain to get a second opinion on fluid levels - different u/s techs/docs can find pockets in different places. Also, ask them to give you a number - you certainly have a right to know that. And ask him why he feels the need to induce, if he's still pushing for that. Ask specifics & whys & what ifs. Before DH & I consented to even being checked in at the hospital this time, we made sure to ask over & over all the possible scenarios - even the crazy ones (like what if you start me on IV fluids and DS turns). I also had the complicating factors of DS being breech AND having a previous C-section, so induction was off the table, as was a version due to low levels.
FWIW, the perinatologist sent me home when my levels were coming up in the 5.xx at 35/36 weeks, with repeat NST & fluid checks scheduled. He said he liked to see AT LEAST 6, but because baby looked good on the NST & biophysical exam, he wasn't overly worried - just to monitor his movement.
Of course, babies do tend to slow down at the end anyhow... but I knew something felt wrong, particularly after my yoga class when DS wasn't doing his usual "flips" in my belly after certain moves.
He was born the next day!
What's your gut telling you about her decreased movement? You could always go for a repeat U/S & NST at a separate lab... that might give you a little piece of mind.
Honestly, I think what you're feeling inside is a valid indicator & shouldn't be taken lightly. If you really feel baby is okay, get another opinion on fluid levels, get more doctor's opinions or further detailed info on your possibilities, and weigh that along with your instinct before consenting to induction.