Transgender

Transgender (adj.) – According to Google
Denoting or relating to a person whose self-identity does not conform unambiguously to conventional notions of male or female gender.

Plainer English
Referring to a person whose thought of themselves doesn’t line up with one accepted idea of being a man or woman.

As simple as I can get it
a person who thinks of themselves as a man or woman even though they have the opposite sex organs.

That man is transgender, because he identifies as a woman.

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