Wind's answer is good.
But to add more details;
그 or 그녀 sounds a bit literary for native speakers.
In spoken language, we are more likely to say
그 사람(that person), 그 애(that child, shortly 걔)
instead of distinguishing by gender.
That is why we sometimes ask "Yeah.. I understnad. So is the friend you are talking about a boy or a girl?" after 1 hour talk.
If you want to include the gender, you can say 그 여자(that woman), 그 남자(that man), 그 여자애(that girl) or 그 남자애(that boy)
And correction:
그 means 'THE'. 그 것 is 'IT'
You(plural) is 너희들(반말: language we use for close people who are younger or same aged), 여러분(honorific), NOT 너들.