Yes, she was tied up in an abandoned building surrounded by barrels of gasoline and when they exploded she died
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Rachel Dawes
Rachel was played by Katie Holmes. The rumor is that her husband, Tom Cruise, talked her into dropping out of the Batman films.
in the war
I say no
He wanted to save Rachel, he clearly says he's going after her when Gordon asks. Then Gordon says to his men to go to 250 52nd street, where they think Harvey is. Therefore Gordon and his men go to where they think Harvey is, and Batman goes to where he thinks Rachel is. Therefore, the only logical explanation to why Batman appears where Harvey is is that the Joker knew that Batman would choose to go after Rachel, so he switched the two places. He lied. So that in the end, both Batman and Harvey are messed. This is never explicitly said in the movie I don't think, it just takes rewatching that scene a few times.