Sentence 1: Tammy was at work when she heard her neighbors gossiping. 
 Sentence 3: She didn't want to seem snoopy but felt she had to tell her friend 
 Sentence 4:  Unfortunately, this started a huge fight that Tammy wanted no part of 
 Sentence 5:  She apologized and retreated to her desk where no one would bug her 
 Option 1: Then she heard her friend's name come up. 
 Option 2: Then she realized they were talking about her.