Essentially. What $D$ does can be worked out explicitly as
$$
\begin{align}
D(p(x))=& \left( p_2(x)\frac{d^2}{dx^2}+p_1(x)\frac{d}{dx}+p_0(x) \right) p(x) &&\\
=& p_2(x)\frac{d^2}{dx^2}(p(x))+p_1(x)\frac{d}{dx}(p(x))+p_0(x)p(x) &&\\
=& p_2(x)\frac{d^2p}{dx^2}+p_1(x)\frac{dp}{dx}+p_0(x)p(x), &&
\end{align}
$$
where the direction of multiplication matters. I suggest writing this out in full your first few times dealing with such operators so that you're less likely to make silly mistakes.
For the question in the exercise, think about how differentiation (first-order, second-order, etc.) affects the degree of a given polynomial. In particular, consider what the $k^{th}$ derivative does to the degree.