35, virgin, have reddish soft lump on inner vagina lips. feels bit little sore and noticed it discharge a little blood. my vagina is feeling little itchy but not all the time. felt like a pea sized ball before, but now its soft. is it cancer?

Sounds like Bartholin's Cyst, a fairly common fluid filled lump near the vagina opening that can become painful when infected. Warm Sitz Baths with Epson Salt for 10 to 15 minutes , twice a day for 3 to 5 days or as needed can provide relief. Sometimes it bursts spontaneously and one notices some discharge which might be blood tinged sometimes. if swelling/pain persists, see PCP for antibiotics

It may be a Bartholin cyst. Visit this site for info: https://www.mayoclinic.org/diseases-conditions/bartholin-cyst/symptoms-causes/syc-20369976 If by virgin you mean lack of PIV but may have experienced other sexual contact, e.g. oral sex, it may be an infection.