Yes. Of course. Women are more socialised to disguise it though and depending on how they're brought up and their culture they might be more or less likely to talk about it or act on it. Women like to look at erotic art and such like and will get 'aroused' by it if they're relaxed about that sort of thing. Women will use 'fantasy' to arouse themselves, which is why romantic novels are so popular. Once or twice I've dreamt I was making love with Brad Pitt and woken up 'all in a lather' (lucky me).
Women's sexual organs swell when they're aroused exactly the way men's do, but ours are a different shape of course, so it's not so 'obvious' as a man's. I'd definitely encourage you to do some googling about the actual mechanics (no, that doesn't mean watching porn - that will give you a totally unrealistic view of things).