Yes, she is female. I am not sure where this gay idea comes from. She seems nice, and anyway, how bearable a chick is generally doesn't change whether a guy wants to fuck them or not.
I'd want my roommate to stay and watch. Maybe even take pics for us. hell, you could even masturbate if you wanted to. I wouldn't care.
I'd just go into the other room...start playing guitar at random moments, you know. When I used to live with a bunch of my friends, it didn't really matter, they'd do it in the same room as you. lol ...not to say I'm not guilty of doing that, but it's kinda funny.