This isn't a transgender case. It's a disordered sexual development case where the individual has biological characteristics of both male and female such that they don't entirely fit either category. Regarding trans people being mentally ill, I'm not sure that's contested. Dysphoria means profound unease or unhappiness. So a person with gender dysphoria is a person whose biological sex is a source of profound unhappiness to them. A woman trapped in a man's body or vice versa. The issue of how they should be classified for competitive sport should be separated from whether we afford them the same respect owing to any person irrespective of what psychological difficulties they might encounter.