Hi Nancy!
Did you use the template or create the shapes/layers yourself?
This template I know doesn't have any jagged edges- and ideally templates you're using/buying should be jagged edge-free, but rarely you'll find one with rough edges.
If you made the shapes yourself- make sure your file is set to 12x12" with 300 DPI. If its less than that you're likely to lose quality and see jags. Also- PS and PSE are not ideal for shapes/layers. Usually I'll do that work in like illustrator, which is head and shoulders better for that type of work.
Hope this makes sense!