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No? Most people know it from "To err is human; to forgive, divine": http://en.wiktionary.org/wiki/to_err_is_human
It seems to be making a comeback:
The first quote shows the most common use in modern English.
I don't think that works too well. "She does not make mistakes" means that it is not in her nature to make mistakes whereas "She is not mistaken" sounds more like she is not wrong about something on a single occasion and doesn't tell us whether she makes mistakes herself.
I think your sentence translates "Ela não está enganada".