Buyer wants refund, item not received, but I want to wait until AustPost resolves case (10 days)

Should I just refund her?   I've raised a case with Australia Post but I'm scared I'll get negative feedback because AP take 10 days to resolve cases, this is out of my control.  Item left Vic 19th June, still not delivered on 11th July - should I just refund??  

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