Function and Variable: fatal problem?

Take the logical proposition:

John loves Mary

Here, John and Mary are distinguished by the function 'loves'. 'Loves'
distinguishes John and Mary.

This begs the question - what is the logical status of John and Mary?
The answer that they are 'variables' leaves us with a profound
problem:

What is the hidden function that distinguishes 'variables' from each
other?
.

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