I'd just ask her (politely) and then if she persisted...just ignore.
It could be a really simple misunderstanding and easily solved which would reduce tension for ever more....or maybe she is just a nasty person. BUT, i would assume an innocent misunderstanding as my first guess.
Kill her with kindness
Unfortunately not everyone in life is going to like us. Her problem, not yours. If you keep saying hello, you are setting a good example for your kids
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