Yours is the first wrong answer - the second follows your post.
It's pronounced pew - al - up. No sound from the y.
How do I know ? I lived in Washington for 31 years and attended the Puyallup fair more than once.
Then you know you don’t really “attend”, you “Do the Puyallup!”
And hopefully, “The mountain is out!” The first time flatlanders hear that, they haven’t a clue.