An out-of-bounds memory access flaw was found in the way QEMU's virtual Floppy Disk Controller (FDC) handled FIFO buffer access while processing certain FDC commands. A privileged guest user could use this flaw to crash the guest or, potentially, execute arbitrary code on the host with the privileges of the hosting QEMU process.
If you're using RHEL, then SELinux further confines the qemu process so although you can run arbitrary code in there (which is very bad) you cannot access any files on the host filesystem except ones which qemu has open. Also libvirt runs qemu as a separate user, and further confines it with some cgroups rules. Depending on the version of RHEL, seccomp may be involved too, which limits the type of syscalls that qemu can make.
Applying the qemu fix is still highly recommended of course.