Yes, they are interested and can humble you at any time! Since you are comfortable that she is "not acting out" it's a good time to talk about private parts, matter-of-factly, and how they are "private". Just don't act embarrassed, she'll sense that. Answer questions as they come and they can come at any time of the day...sounds like normal curiosity! And, I would do your best to use anatomically correct names at this point in her life. Calling it by its proper name is less confusing because everything else has a proper name too.
Brings back memories of my son, at two years old, during a library storytime-craft class. He created a paper parrot and glued on these brightly colored plumes. He was so proud of his project -he made sure to tell all teachers and EVERYONE who listened that it was a BOY parrot. And.... how you were able to tell? By the anatomically correct placement of a large, pink feather! There was a lot of adult giggling!
They will continue to humble you! Best of luck!