forkid: no. there is no word there for "she". "esto" means "this" (neutral).........................oh, wait a minute...... I see what you are saying. If you reverse word order and assume you are talking about a female, that might be ok. But like so many sentences in Duolingo, we do not know the context.
Something I discovered while checking why my transcription was incorrect: "éste", "ése", and "aquél" are singular MASCULINE demonstrative pronouns, whereas "esto", "eso", and "aquello" are their respective singular NEUTER demonstrative pronouns. Furthermore, these neuter demonstrative PRONOUNS do not have a corresponding neuter demonstrative ADJECTIVE; you would have to use a GENDER-SPECIFIC demonstrative adjective. (Sources: [http://www.duolingo.com/#/skill/es/Determiners], [http://spanish.about.com/od/pronouns/a/demonstrative_pronouns.htm], [http://spanish.about.com/od/adjectives/a/demonstrative_adjectives.htm])