If I want to talk about an argument between friends and I tried to be a mediator, and I want to say "
I tried to make the atmosphere less tense by pretending nothing was happening." Use of the word "atmosphere" confuses your intentions. You were not trying to reduce a problem with the atmosphere in the room, you were actually trying to lessen the tension between two friends by pretending nothing was happening. I suggest: I tried to lessen the tension (or to reduce the tension) by pretending nothing was happening."
1) Does this sentence sound OK for native speakers?
No. If no, can anyone suggest an alternative?
See above.
2) I wonder if "less tense" can be replaced by a single adjective in this context.
Reduce (see above).
Hope someone can answer my questions one by one
