I have a major problem?

My daughter who is 6 has been getting teased a lot latelty. They call her fat and ugly and disgusting, well she asked me point blank last night if she was ugly. well of course I was a supermom and said no you're beautiufl, blah blah blah..... but I'm not blind. she is very overwight, pimples already, just ewwww, should I have told her the truth? I wish I had money to get her some lipo and plastic surgery but I'm a single Mothewr. I mean I've raised this girl, changed her diapers, bathed her, tucked her in, sang her to sleep, p[layed with her, etc, believe me there isn't anything pretty about her. so what should I do?