I'm in NSW, but we also use A-E descriptors. I found the descriptors below for Qld.
The QCAR Standards guide reporting of student achievement and progress in Years 1–3. They are as follows:
A Evidence in a student’s work typically demonstrates a very high level of knowledge and understanding of concepts, facts and procedures, and application of processes.
B Evidence in a student’s work typically demonstrates a high level of knowledge and understanding of concepts, facts and procedures, and application of processes.
C Evidence in a student’s work typically demonstrates a sound level of knowledge and understanding of concepts, facts ad procedures, and application of processes.
D Evidence in a student’s work typically demonstrates a limited level of knowledge and understanding of concepts, facts and procedures, and application of processes.
E Evidence in a student’s work typically demonstrates a very limited knowledge and understanding of concepts, facts and procedures, and application of processes.
Based on the above descriptors, your DD is probably performing below the standard for her age/grade/stage level, however the outcomes/standards she is being assessed against may be for the end of year three or even the end of year four (if assessment is across stages- not sure in Qld) so it may not be as bad as it looks. However, she may need extra assistance with literacy and numeracy. She may well be receiving some already? What programs are running within the school?

As for effort equalling achievement, unfortunately that is often not the case with regards to grasping literacy and numeracy concepts. Practising at home would be of huge benefit though.

My concern is what contact did you make with the school after the last report card? Have you attended parent/teacher interviews, class orientation at the start of the year? You need to develop a relationship with your child's school (whichever school that may be). Schools have finite resources (financial and otherwise ie time) and if the demographics mean that many students have additional learning or behavioral needs, then students who are at least gasping the basics are probably not the first priority. That said, I'm sure your child's teacher would be only to happy to give you guidance on what you can be doing to help her improve.