I'm glad you got this out, it can sometimes make things a lot clearer if we can see it written out on paper, or even a forum! I think the first thing I would concentrate on doing is trying to calm down a little bit. Maybe take some time by yourself, read a book, listen to some music, take a warm bath - something nice for you. Then. You can figure out what you want to do. We think more rationally when we are calmer, and this is not the place to make any split second decisions in the heat of your anger/upset-ness. I would suggest talking to her, as others have. If you feel too upset right now, give it a couple of days. Just try to stay away from her, as much as you can.
In terms of school, and the kids there, you can either just ignore it as much as possible, which tends to make people get bored of it quicker, or you can kind of act absolutely fine with it. This tends to make people think it isn't quite so newsworthy. This site has some good ideas as well.
Take care. =)
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I don't mind, I'm still free
You can't take the sky from me