If he could come up with a beautiful lie, it would replace her loss with a different

[keannu]

Is this conditional1, a real conditional of the past or conditional 2, an unreal conditional from past's stand point of view?

ex)One day, a novelist, went out for a walk in the partk. He ran into a little girl in tears, sobbing her heart out. Kafka asked her what was wrong, and she told him that she'd lost her doll. He immediately started inventing a story. "Your doll has gone off on a trip," he said. "How do you know that?"the girl asked, "Because she's written me a letter,"Kafka said. The girl seemed suspicious. "Do you have it on you?" she asked, "No, I left it at home, but I'll bring it with me tomorrow," he said.

Kafka went straight home to write the letter. He wasn't about to cheat the little girl. This was real literary labor, and he was determined to get it right. If he could come up with a beautiful lie, it would replace her loss with a different reality - a false one, maybe, but something believable.

[5jj]

It's a first condition in a literary kind of reported speech. Kafka's actual thought was, "If I can come up with a beautiful lie, it will replace her loss with a different reality".