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Thank you for the question. Yes, this is all related to the same problem. It sounds like a terrible diaper rash that has extended to the vulvar area. This is caused by yeast. I am sure that she is very uncomfortable. Usually this is treated in the following manner:
1. The area must be clean and dried
2. Apply some barrier cream such as Desitin to protect the skin
3. If the urethral area is not overly uncomfortable, then you do not necessarily need to cover this area, but loose cotton underwear will help to get air to the area
4. She needs to get to a Pediatrician tomorrow to be examined
This may be normal but it could also be a sign of some underlying problem. For example, women who are prone to yeast infections may have diabetes.
Does this help?