There is still a chance you will pass the 3 hour test even though you failed the 1 hour. For the 3 hour test, they will have you fast and then you will drink a larger sugary drink and have your blood tested over the next 3 hours. If you pass 2 out of 3 (or all 3), you won't be diagnosed with GD. If you fail 2 out of 3 or more, you will be diagnosed with GD and will have to see a dietician, possibly a ob specialist to monitor your sugars throughout the remainder of your pregnancy. They will probably first try to get you to manage your sugars through diet alone, but if that does not work, they will put you on medication and/or insulin to take as needed.
Once your baby is born, they will test both of you for any sugar issues. In most cases, you will both be fine. There is a small chance, however, that you may end up getting Type II diabetes, but most women are fine. There is also an elevated chance that you can develop GD with future pregnancies.
The main thing to remember is that there is NOTHING that you can do wrong to cause GD. ANY woman can get it. You could be a marathon runner with the healthiest diet in the world and the most in-shape body and still get GD. It happens, and if you get it, it is not your fault. The worst thing to do, however, is to not take care of yourself and follow the dietician/doctor's orders and follow the diet and take any meds/insulin. Failure to do so can harm both you and your baby.
I had GD with my last pregnancy, it was diagnosed very early, and I was on insulin for most of the pregnancy. I followed the GD diet and doctor's instructions to the letter and had a beautiful, healthy baby girl. My sugars reset after her birth. I was also fortunate in that I did not develop GD with this pregnancy.
Best of luck to you and I hope you pass your 3 hour!