Carol is still alive. Whether she last more than two episodes will be the next question.
Pretty much from the end of the fourth episode to the end of this episode was less than 24 hours, so it's not like a sophie situation where she's been missing for a week.
And then from a storyline prospect, I think that Carol has to stick around long enough to play some sort of role within the upcoming decision that Daryl will have when he meets his brother. Obviously all that awkward relationship stuff that they built up in Season 2 between Daryl and Carol has to play out in some form or another and I think Carol or Carol's memory will keep Darryl in the group.