confusion about defects..

I have a buyer who used the email tag " item not as described" when wanting to return an item. pics were blurry, and she didn't see the shirt pattern properly.

anyway, I have it back, and am ready to refund , but don't want a defect.. what do I do?

Will ebay already consider it a defect as she had used that header in messages?

this all sucks.

she may leave defect herself anyway, she seems nice enough, but who knows.

what's the best course of action.

cheers