What is the proper sequence of actions?

When she applied for her job at the airline, Diane stated that she had served in the U.S. Air Force.]]> What is the correct tense of the underlined verb?

When she applied for her job at the airline, Diane stated that she had served in the U.S. Air Force.]]> Say the sentence.

When she applied for her job at the airline, Diane stated that she had served in the U.S. Air Force.]]>