As I remember, she initially said that Obama Jr. was born in Kenya but immediately change her tune in the next breath saying Obama was born in Hawaii. Whether this was because Obama’s paternal grandmother remembering her instruction given to her to say that, or another person in the room, the interpreter, reminding her to, or like you say she was referring to Sr.
Not according the article. Other people present said that BHO Jr was born in Hawaii, or the United States, but not Grannie Sarah. She stuck to her guns. I think I actually kind of like her. Of course she's no blood relation to BHO, which is a big point in her favor.