Do I confront girl who is spreading rumors about me?

Anonymous
So I dated this guy for two years. We are in love, its great..then he decides that he wants to be single for awhile. I'm not stupid, he wants to sleep with other girls. Great. So, after weeks and weeks of moping around, I get out and start dating again. Well I really became attached to this new guy and went on trips with him. When my ex found out, he found a girlfriend immediately. I will make this short, they break up 3 months later, I broke it off with new guy a month prior because of the distance. I went to my local bar, and poof, there was old boyfriend. We started talking and he told me how much he loved me and blah blah blah. Few drinks in we sleep together. His ex-girlfriend texted me a few days later asking me if we did, and I told her the truth. She was so angry that she's been going around town telling everyone lies about me. Saying that I have been with married men, that I was pregnant with my ex's child, etc. It's crazy! I have had to deal with this for MONTHS now. I haven't even been dating my ex anymore, we have managed to stay friends. Tell me, do I just let this girl keep spreading gossip or do I confront her about it? And in all honesty, does she really even have a reason to be mad?
Do I confront girl who is spreading rumors about me?
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