Although George I was German, he was the great-grandson of James VI of Scotland and I of England.
The Queen's ancestry can be traced back directly all the way to William the Conqueror.
She is also directly descended from various English and Scottish royal houses and also pre-Conquest Anglo-Saxon royals, plus of course is related to many European royal houses via Victoria.
http://en.wikipedia.org/wiki/Direct_...o_Elizabeth_II
http://en.wikipedia.org/wiki/Ancestry_of_Elizabeth_II
I don't consider her to be "German".