This is the song Venus. The first original version was made in 1969 by Mariska Veres and Shocking Blue. This was performed ayear later. The style of clothes is definately that period especially during the filming of the audience.
The second version was a humungus hit in 1986 by Banarama. Yes in college at that time people did dance like that when there was a school dance and that song came on. I liked their Cruel Summer song. To me they were not as good as the Bangles who were popular at the same time.