Cannot have 2 inputs problem.

Python Code
#A program to read inputs and send them to Arduino
import serial #Sends data to Arduino through serial.Serial
import time
import pygame #has functions to read keyboard inputs.

pygame.init() #initialize pygame or something
screen_width=100
screen_height=100
pygame.display.set_mode([screen_width,screen_height]) #makes a window for pygame to run off

arduino = serial.Serial('COM3',9600) #the target Arduino to send data to.
time.sleep(0.5)

print("Start")
while True:
    for event in pygame.event.get():          #starts the event queue
        if event.type == pygame.KEYDOWN:      #KEYDOWN activates when a key is pressed
            if event.key == pygame.K_f:
                arduino.write(b'1')           #verifies which keys were pressed and sends
            if event.key == pygame.K_r:       #a data value to activate one of the 8 LEDs
                arduino.write(b'2')
            if event.key == pygame.K_d:
                arduino.write(b'3')
            if event.key == pygame.K_e:
                arduino.write(b'4')
            if event.key == pygame.K_s:
                arduino.write(b'5')
            if event.key == pygame.K_w:
                arduino.write(b'6')
            if event.key == pygame.K_a:
                arduino.write(b'7')
            if event.key == pygame.K_q:
                arduino.write(b'8')
        else: arduino.write(b'0')             #turns the LED off when a key is not pressed.
                                              #Could also use KEYUP somehow.

Arduino Code
 int data;

void setup()
{
  Serial.begin(9600);
  pinMode(2, OUTPUT);
  digitalWrite (2, LOW); //initially set to low   //Sets up all the pins for use
  pinMode(3, OUTPUT);
  digitalWrite (3, LOW); //initially set to low
  pinMode(4, OUTPUT);
  digitalWrite (4, LOW); //initially set to low
  pinMode(5, OUTPUT);
  digitalWrite (5, LOW); //initially set to low
  pinMode(6, OUTPUT);
  digitalWrite (6, LOW); //initially set to low
  pinMode(7, OUTPUT);
  digitalWrite (7, LOW); //initially set to low
  pinMode(8, OUTPUT);
  digitalWrite (8, LOW); //initially set to low
  pinMode(9, OUTPUT);
  digitalWrite (9, LOW); //initially set to low
  Serial.println("This is my First Example.");
}

void loop()
{
while (Serial.available())                            //receives data from python script
  {
    data = Serial.read();                             //stores data in a variable
  }

  if (data == '1')                                   //reads data and lights an LED
  digitalWrite (2, HIGH);
  if (data == '2')
  digitalWrite (3, HIGH);
  if (data == '3')
  digitalWrite (4, HIGH);
  if (data == '4')
  digitalWrite (5, HIGH);
  if (data == '5')
  digitalWrite (6, HIGH);
  if (data == '6')
  digitalWrite (7, HIGH);
  if (data == '7')
  digitalWrite (8, HIGH);
  if (data == '8')
  digitalWrite (9, HIGH);

  else if (data == '0')                             //turns off LED if not.
  digitalWrite (2, LOW);
  digitalWrite (3, LOW);
  digitalWrite (4, LOW);
  digitalWrite (5, LOW);
  digitalWrite (6, LOW);
  digitalWrite (7, LOW);
  digitalWrite (8, LOW);
  digitalWrite (9, LOW);

}