Решение:
- My parents were not playing chess at 7 pm yesterday. (действие, которое длилось в определённое время в прошлом).
- When she woke up, it was raining. (резкое действие 'wake up' в Past Simple, длительное действие 'rain' в Past Continuous).
Ответ: 1. were not playing, 2. woke up, was raining.