Yes, she will have to live here for 3 years before she can qualify for citizenship, unless one of the following exceptions apply.
1. Her other parent is applying for citizenship at the same time she is.
2. Either you or your spouse (and your spouse is a PR/citizen) were working for the Canadian Armed Forces, or Canadian Federal or Provincial government
If those exceptions don't apply, you will need to sponsor her, then move here, stay for three years, and then apply for citizenship.
In addition, if you are living abroad, you can sponsor her for PR, but you need to show a plan to move here when she gets her PR. She won't get a PR if it's clear that you have no intention of moving to Canada.