I believe that she IS alive. My feeling is that one of the girls shot a walker and snatched her up as a walker was about to get her. That is probably where the blood on the baby seat came from.

I think that it would be the final straw for Rick if Judith is dead. That would be really cold to kill her off the show! Don't believe that Rick could survive something like that after all he has sacrificed and lost.

Hmmmmm. Wouldn't it be something if we were to find out that Carol quietly came back to another part of the prison and was the one who saved Judith?