Are the characters in blue lagoon brother and sister in the movie?

No. They're cousins. Emmeline addresses Arthur Lestrange as Uncle, while Richard calls him Father.

Plot Synopsis from IMDb:

In the Victorian period, two children are shipwrecked on a tropical island in the South Pacific. With no adults to guide them, the two make a simple life together, unaware that sexual maturity will eventually intervene.

Brooke Shields was just 14 years old when she filmed The Blue Lagoon, the infamously sexy and slightly salacious island-set romance that capitalized on burgeoning hormones in a big way.

The film was shocking when it debuted in the summer of 1980—but even more than three decades later, it can still make jaws drop.

Here’s a look at some of its more compelling tidbits, complete with undiscovered iguanas and a nifty trick to cover up nudity (from Mental Floss).

Tags: blue lagooncousinssisterbaby 
Wednesday, July 26 2017
Source: http://www.michaeldvd.com.au/Reviews/Reviews.asp?ID=2801

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