1 is correct. It's a second conditional sentence. 2 is a small mistake because the meaning is still clear and native speakers can be seen making this kind of mistake.
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FreddyYanWhy would she march in a gay parade if she weren't gay?If you know she isn't gay, then I don't see the point of making it hypothetical. If you make it hypothetical, you introduce a counterfactual element, so in this case, you're claiming that she must be gay.