Bank 1 sensor 2 is definitely the rear (post-catalytic converter) oxygen sensor on the passenger's side.
If you want additional confirmation, you can reset the codes (disconnecting the battery for several minutes should do the trick if you have no other means available) with all O2 sensors plugged in and see which codes pop up after several trips. In my case, resetting the code after its first sighting took around 30-40 miles of driving for it to pop back up; resetting again did the same thing, so I just replaced the sensor and all is well now.
As for the drop in your mileage, how many miles do you have on this Pathfinder? Perhaps try running some fuel system cleaner like
Redline SI-1, Chevron Techron, or Gumout with Regane. All three of these contain a significant amount of polyether amines, which is a detergent co-developed by Chevron and BMW to effectively clean fuel deposits without leaving behind deposits of its own as solvents and other cleaners do. Redline SI-1 contains the most PEA out of the three. If the fuel filter hasn't been replaced to your knowledge, replace it after running the fuel system cleaner. There is a replacement guide
here - replace using a
Wix 33023, or a NAPA Gold 3023. Ensure the air filter isn't completely clogged. You should also be running at least 91 octane fuel for the best performance - the difference only amounts to several dollars per fill-up. You can read more about octane
in this article if you wish.