No, that equation is not about QCD specifically, and it does not even pertain to the sign problem itself: it's a measure of the effectiveness of reweighting, which is the "obvious" strategy for dealing with a sign problem.
The way people actually do Monte Carlo calculations is the following: imagine you have a bunch of particles whose spins can be up or down. I'll assume that particles adjacent to one another can interact, and they can lower the energy of the system if their spins are aligned. This is the Ising model, which is a useful model of a ferromagnet. Now, if you want to study the Ising model via Monte Carlo, what you do is to generate a bunch of assignments of "up" or "down" for each spin, but you do it in a clever way: you generate these assignments (which from now on I'll call "configurations") in such a way that they're Boltzmann distributed. This means that, if you set the temperature of the system to be T, a configuration with energy E will appear with probability proportional to exp(-E/T). Now if you do a
uniform sampling on these configurations, you can calculate, say, the magnetization, and it'll give you on average the same value as a "real" physical system that is described by the Ising model. Sneaky, huh?
The sign problem is what we call when the "Boltzmann factors" corresponding to some physical system become negative or complex. I don't know how to generate configurations with a _negative_ probability, so the entire program crumbles. One way to rescue it is to take the absolute value of this complex Boltzmann factor and generate configurations weighted according to that, and then you take the sign (or phase) and move it to the observable you're trying to measure. I don't know how to generate complex-weighted configurations but I sure know how to measure a complex observable, so this procedure, in principle fixes the problem. This is "reweighting".
However, by doing this we have discarded important information about the system. The configurations which are "typical" for the system with absolute value weights are not necessarily the same configurations which are "typical" for the original system. The problem was "fixed", technically, in the sense that I can write an algorithm that works, but it's also a useless algorithm. It is useless because I'm simulating a
different physical system, with different properties, and hoping I'll learn something about the original one. You might ask how bad this is. Well, that's what the equation you've seen says. It's saying that the errors introduced by the reweighting are proportional to exp(Δf V/T), where Δf is the difference in the free energy densities between the original system and the reweighted one.
See
here for more details.
So, in short, this equation is a measure of how bad the naive strategy is at dealing with the sign problem. There's nothing quite so specific about putting in N quarks, etc. I mean, the simulations of QCD which have the sign problem don't even
have quarks as you'd think of them, because they've been integrated out.