a-The gathering was sad. The people at the gathering were sad.
b-There was sadness in regard to the gathering. The fact that there was (or was going to be) such a gathering made some people who probably did not even participate in it sad.
Top answer
#1 means that someone was sad because the gathering was held.
— Mister Micawber
#1 means that someone was sad because the gathering was held.
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