I believe it would hit 120 in 2nd. Just a correction though : the '2' doesn't mean it will stay in the second gear. In '2', it does shift to third, but it doesn't let the RPM drop beneath 5ish-k, as soon as the RPM drops below 5k, it downshifts.
"2" means the car starts moving from static in 2nd. It is there to avoid wheelspin on slippery roads/ice/heights.