In this sentence, the word "Jagen" should actually be capitalized, because it's used like a noun. "Im Augenblick ist sie Jagen" means "right now, she's out hunting". German doesn't have a simple and a continuous verb form, i.e. "she hunts" and "she is hunting" both translates as "sie jagt", but by using a present tense form of "to be" (sein) and the infinitive of a verb as a noun, you can achieve a similar effect. For example, if I wanted to say "they are out shopping right now", you could say "Sie sind gerade Einkaufen". "gerade" is a word that is often used to say "at the moment".
