@scylla - you mentioned the special grant of citizenship in 1977, would you mind explaining the significance? Thanks!
Basically before 1977 under the 1947 Citizenship Act, married Canadian women could not pass down citizenship by descent to her children; only men or unwed women could. In 1977, the Citizenship Act was revised, and among the changes was that any children that were ineligible for citizenship by descent because of the previous Act could now apply for a special grant of citizenship under
5(2)(b). Under this grant, you were deemed a Canadian citizen since the day you received it, and because you were an actual Canadian citizen at the time of your daughter's birth in 2002, under the 1977 Act, she was born a Canadian citizen in 2002. 3(3)(4) of the 2009 Act protects her claim to citizenship because she was born a citizen in 2002.
Had you not gotten the special grant in 1977, you would have automatically been granted citizenship by descent under the 2009 Act, and would have been deemed the first generation born abroad. Even though you would have been retroactively been deemed a citizen since the date of your birth, the first generation limit would have applied to your daughter, because you were not yet a citizen at the time of her birth in 2002.
Also as a side note, your special grant of citizenship was converted to citizenship by descent under the 2009 Act, so instead of being deemed a citizen since the day you received the grant in 1977, you are now deemed a citizen by descent since your date of birth in 1974.