If your husband was born in UK before 1983 (and his father wasn't a foreign diplomat) he is a British citizen otherwise than by descent. Provided that your were married when your daughter was born outside the UK, she is a British citizen by descent from him - under section 2(1)(a) of the British Nationality Act 1981.
No need to include her her in your naturalisation application; she is not capable of being registered as a British citizen, because she already is one.