Money Back Guarantee - sellers

Buyer has demanded a refund stating a couple of loose threads on the end of a dress. I have agreed to refund on return of the item. I requested she open a Dispute via a Paypal (payment method) as I am familiar with the return process. However, she has gone through eBay's MBG.
When I open the case the options are Accept Return" or "Partial Refund" I haven't selected either yet because in very small print below it says this:

"You can issue a full refund or offer a partial refund. In either case, the buyer keeps the item.
If there's a problem, you can ask us to step in and help by 29 May, 2015"

If she wants a refund I want the item back. Normally I would have said keep it and given a full refund, but her email was so rude and demanding, that I really want the item returned, I really cannot stand bad manners. I have paid for the return post and emailed her the postage label.

So what happens if I select "Accept refund"?

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