"Genderqueer" describes a category of gender that is neither traditionally "female" or "male." Many different, nontraditional gender identities fall under the umbrella term "genderqueer." Genderqueer individuals may identify as having a gender somewhere between female and male or, more commonly, out of the gender binary all together.
Unless told otherwise, polite pronouns for genderqueer individuals are the singular they and ze/hir pronouns. Most genderqueer individuals take offense being referred to as "it."
"Is Dakota a girl or a boy?" "They're genderqueer!"
"So, because she's genderqueer, it means she's a slut and sleeps with everyone, right?" "Haha, no. Genderqueer just means their gender identity. It has nothing to do with their sexual orientation."
"I'm a dude, so I don't really want to take home ec." "Dude, I'm genderqueer! I'll take whatever the hell I want and not worry about it."