Two things: First, how old is your test kit? Nitrate kits are subject to becoming inaccurate if they aren't used for a while or are old. Bottle 2 can develop clumps (thus the reason for shaking it 30 seconds before using and for 60 seconds after adding it) yielding bad results. Second, if the test is indeed correct, contact your water company (provided you aren't on well water) immediately. That level of nitrate is dangerous for you and especially for infants.
As for the nitrate level, as mentioned, it isn't necessarily dangerous to your fish. They can handle levels higher than that, provided you aren't dealing with delicate fish that need pristeen water such as discus. I would suggest taking a water sample to the loccal fish store to have it checked.