She asked "Are they gay?"
Now, a little background. There were some hints that the pair might be more than just friends throughout the final season of the series, but I mostly ignored them, figuring the creators were just having a bit of fun with the censors. After all this is a show that depicted the on-screen execution of an elderly woman, and yet could never quite bring its characters to say "killed." ("Zaheer 'took out' the Earth Queen!")
Consequently, I figured that this would be relegated to the realm of Josh's personal head-canon. At least until the final scene of the series finale.
That's not subtext. It's text. So that's pretty cool.
I said to Lily, "It looks that way. I think they love each other very much, and they're dating now."
Lily thought for a moment, and said, "I'm cool with that."
Good on her, and good on the creators of Korra.