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Diese Frage wurde auch hier beantwortet (auf Deutsch):
Zweite und dritte Person im gleichen Satz - wonach richtet sich das Verb?
I am quite new to the German language. I'd like to know which of the following is correct:
To me, it seems that #1 should be correct. Is my understanding correct or not?
You are right. #1 is correct.
In case of just one single person you use bin. E.g. "Ich bin im Cafe"
If there are 2 or more persons as in your case, you use sind.
