OK. We’ll take this clause by clause.
Which you were - you were born in Britain
Your mother wasn’t born there - she was born in Ireland. Was your father born there (Britain)? If so, sorry, you’re not eligible. If however he wasn’t born in Britain, go onto the next clause:
Were your parents living in Britain at the time you were born? If so, you aren’t eligible.
This exception to the nativity rule is for people who have no connection to a country other than that their mother happened to be physically present in it at the time of their birth. It’s for people whose parents were essentially just passing through the country when they were born. Obviously, this is a really, really small number of people - and it’s intended to be. The State Department likes to keep things easy.