"Wrong, she has a parakeet."
Translation:Väärin, hänellä on undulaatti.
Hän is always "that person" or sometimes "this person". As I understand it, English has the singular they to avoid "does he or she" type of constructs.
Hän translates to he, she, or they depending on the context. None of them are inherently a more natural translation than the others.