Which sentence has correct capitalization?

“The peak of Mount Hood surrounded by clouds,” she sighed, “Was too beautiful for words.”

“the peak of Mount Hood surrounded by clouds,” she sighed, “was too beautiful for words.”

“The peak of Mount Hood surrounded by clouds,” she sighed, “was too beautiful for words.”

“The peak of Mount Hood surrounded by clouds,” She sighed, “was too beautiful for words.”

“The peak of Mount Hood surrounded by clouds,” she sighed, “was too beautiful for words.”