a 2.5 or half filled 5 is pretty much as small as you should go, and perfect imo. Keep in mind you will, most certainly, need a larger tank (at least a 20) to move them to so they can "grow out" before they're anywhere near the jarring stage.
Yes, you can jar females as well..but if space is so tight, why bother breeding at all?
Sexing them (if you're breeding longer finned fish) is pretty obvious, no offense intended, the males are more showy with...longer fins.