In her interview with Katie Couric, Palin says one of her closest friends is gay. Interestingly, she describes it as a choice — a key dividing line between social conservatives (who argue that it is a choice) and many others who argue that homosexuals are born gay.
Couric had asked about a seminar at her former church geared toward helping homosexuals change proclivities through prayer:

But what you’re talking about, I think, value here, what my position is on homosexuality and you can pray it away, because I think that was the title that was listed on that bulletin. And you know, I don’t know what prayers are worthy of being prayed. I don’t know what’s prayers are going to be asked and answered.

But as for homosexuality, I am not going to judge Americans and the decisions that they make in their adult personal relationships. I have one of my absolute best friends for the last 30 years happens to be gay, and I love her dearly. And she is not my “gay friend,” she is one of my best friends, who happens to have made a choice that isn’t a choice that I have made. But I am not going to judge people.