A man dressed as an angel balances a woman dressed as an angel on his thighs while she hands out papers to people passing on the sidewalk.
Two people are outside.
If a man and woman are balancing and handing out papers on the sidewalk, the two people must be outside.
A man and woman can be referred to collectively as 'two people' and the sidewalk indicates they are outside.
A man and woman, which are two people, are on the sidewalk, which is considered outside.