"To moderate," the verb, with "-ate" pronounced like "eight," can mean to make something less intense.
"Adding milk moderates the bitter flavor of tea."
"You're talking too loud, please moderate your voice."
"Moderate," the noun, with "-ate" pronounced like "it," can mean something that is less intense than something else.
"I like my food very spicy, put everything on it, even the habanero peppers."
"I like my food moderately spicy, I'll take the jalapeño peppers but hold back on the habaneros, please."
"A moderate drinker" means someone who drinks alcohol, but restrains himself from drinking too much.
"Moderate" can be a point on a scale of words, and that is the case here. There is an official set of words used to describe the sea state; see
https://en.wikipedia.org/wiki/Sea_state for the full scale. Three points on this official scale are:
"Slight" means a wave height of 0.5 to 1.25 metres
"Moderate" means a wave height of 1.25 to 2.5 metres
"Rough" means a wave height of 2.5 to 4 metres
The sentence means that Carina would create a range of wave heights, from "moderate" to "rough;" that is to say, some waves would be in the "moderate" range and some would be in the "rough" range.