Daughter got rash from wet underwear?

My daughter was at someone's house last night. The woman mentioned to me she saw that her pants were wet and wasn't sure if she had an accident. I said she probably didn't she probably just got her butt wet somehow (she's 4.5 and is pretty good about pulling her pants down outside and going pee when she needs to, she told us the slide was wet) anyways when she got home and took off her pants she had this rash and this is how it looks the next day. I thought it might have been from her underwear rubbing there and being wet. Its only on one side. Im trying to let it air out but does this look like a rash you could get from wet underwear rubbing there? It almost seems like a blister to me. She has been using new underwear that I've washed before having her wear them. Im just trying to decide if diaper cream will help or make it worse. We are old farmers so we don't run to the doctor for every cut and scrape unless we can't fix it ourself so no need for that type of b.s.