My best friend (F31) drunkenly told me she wants to have sex with me (M26)

Ive been in this city for about 5 months. Ive done a good job at making friends and have a consistent friend group to go out to the bars.

One of my friends (call her sarah) is probably my closest friend. Me and another guy friend met her and her roommates when i was new in town. They always invite us to any events and go to the bars with us. First night we met, they invited us to the bars. Sarah got really drunk and we made out at the bars. She initiated the kiss.

Hanging out with sarah ive noticed she gets very flirty and kisses people (guys and girls) at the bars. Sarah gets very drunk whenever we go out. So i assumed our kiss was just that, a drunken kiss at a bar. We never spoke about the kiss till last month when she randomly asked if we kissed that night. I realized she just didnt remember. I told her what happened and she felt embarrassed because she said she wants to do a better effort at not making out with friends when she’s drunk. She then said she is someone who kisses people and doesnt see kissing as a big thing. I told her “no worries” and i kind of assumed that from what ive seen when we go to bars.

Her and i have been close friends. One of her roommate wants us to date. I do find sarah attractive but she’s not my type. At most id hook up with her but it wouldnt be more than that. Sarah has already told me she doesnt want to hook up with anybody as she wants to get married and is done with hookups. I still feel young and i want to have causal hookups. She’s also said she doesn’t want to hookup with friends but she did mention if she had to hookup with a friend it would be me and another one of our friends that i met through her.

Last night sarah got very drunk. I gave her a ride from her house to the bars so obviously i was going to give her a ride back. As we were leaving the bars she told our whole friend group she was trying hard to have sex with me months ago when she was on a lot of drugs and i picked her and her roommate up at a rave. At the time I was nearby so i didnt mind picking them up. My recollection of the night was she was high and half falling asleep in the back of the car while her roommate played music. Last night when we got in the car, most of the car ride home was her asking me if we would ever have sex. Knowing she has told me she doesnt want to have sex i didnt try to do anything. I just told her we vibe well as friends and if we werent friends id probably try. She seemed annoyed but she said she wasnt upset. She was very drunk and she lives in a 2nd floor so i offered to take her upstairs. She tried saying she’d only let me in if i agreed to cuddle with her all night. Knowing what that could mean and how drunk she was i said no but i still walked her upstairs.

I told one of my guy friends what happened and he said everyone is hoping we get together because we are so close. I told him im just not into her like that and i dont want to ruin a good friendship if it doesnt work out. He also said that she could be feeling mixed signals since i consistently hang out with her. He says i should pretend last nights car ride convo never happened because she will most likely forget about it. Part of me feels like i should at least ask her about last night and how she feels about our friendship.

Should i just forget last night and pretend it never happened?

Tl;dr my best friend was very drunk last night and during our car ride home said she wanted tk have sex with me. She’s attractive but not my type and shes looking for something serious. She has alos mentioned when she was sober she doesnt want to hook up with friends and is done with hooking up. Im almost certain she will likely forget this conversation so im not sure if i should bring it up? Shes a close friend and i dont want things to be awkward.