Translation:They are not stupid.
Good question. I had always understood QIp as "stupid" in the sense of "cannot think well" -- an attribute of people. So accepted translations here are "they, he, she".
I'm not sure whether QIp can also mean "stupid" as in "senseless" (a stupid question). If so, "it is not stupid" should also work.
Or if we use "it" for a child (which some English speakers accept though others reject this).
I'll add "it".
Could refer to an animal - e.g. a cat or a dog - in which case "it is not stupid" would be okay, or?
Context can go a long way towards understanding. Either of the sentences is unlikely to be said without more conversation that would make one make sense and the other to seem odd. I think you will also find that most speakers would have a slight pause between the two syllables when they are separate words. None the less, it is possible for it not to be clear and for the listener to respond by asking QIp be''e' pagh QIpbe' ghaH?