You shouldn't believe this woman. Instead of admiting a mistake and saying she overeacted (and ending the whole thing right here), she's pulling rank and trying to diffuse the blame away by pulling others in. That's pure beaurocratic chickenshit.
Who/whom was the student who considered it distracting? You were in the class, did anyone mention it? Did the student in question (from here on in referred to as "The Phantom Student") say anything to you? If they said anything to her, when was it (as you were in the class as well). Try to remember, might ask people in the class who are friends of yours if they remember as well.
It's dumb of her to do this, unless it really is true. If that's the case, she's going to have to produce a body (or some kind of evidence) saying so and so was distracted. While it is possible, it is not particularly probable.
B17, whatever you do, don't overeact yourself. Don't pump this up at your school. Keep it low, word will get around fast enough and everything you say can and will be remembered, if not used against you. Let the facts do the talking. When you take on "the power" it is wise to be carful. Very careful.