Post
by glorybee » Thu Nov 17, 2016 8:42 pm
You're correct; it's #2.
In the present tense, 'lay' means to put something down and 'lie' means to put yourself into a reclining position.
It gets trickier in the past tense (as your sentence are); the simple past tense of 'lay' is 'laid,' but the simple past tense of 'lie' is 'lay.'
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