Hi!
This is indeed a tooth infection that has advanced and involved the whole tooth!
A Pediatric dentist will do the needful.
Initially an xray will be taken and if possible root canal treatment will be performed and the tooth can be saved else if the tooth cannot be saved then dentist might advice to remove the tooth and place a space maintainer in that place.
Either of the procedure will give minimal discomfort but will be the solution for this condition.
There is a cavity in the front tooth also ( first tooth in the pic) Make sure you have a complete dental check up for your daughter so that the decay can be resolved at the initial stage itself.
Next Steps
Visit a Pediatric dentist at the earliest.
Health Tips
Don't ignore. Milk tooth has there own importance and has to be saved and not neglected. Take care.