When assessing the number of people living in a house (for Council Tax purposes), full-time students are not counted.
So, for the purposes of council Tax, the only adult living in the house is your daughter. That means that the 25% discount in Council Tax, given to households where there is only one adult occupier, applies. So your daughter will receive a bill for 75% of the full council tax for that property.
Although the Council Tax bill will (presumably) have your daughter's name on it, it should be remembered that Council Tax is levied against properties, not individuals. Students don't count when assessing the number of adults in a property but that doesn't mean that they should automatically assume that they've got no responsibility for contributing towards the Council Tax.
If your daughter was to live on her own in a small flat, she'd receive a bill for 75% of the full Band A Council Tax. If she shares a house with her friends, it will probably be in a higher band. So, for example, your daughter might receive a bill for 75% of the full Band D Council Tax (which would be 50% higher than she'd be paying in a flat). It would seem reasonable to expect the students to contribute towards the excess.
Chris