A longtime friend to whom I had been providing transportation was upset she had lost a special ring. Now she's accusing me of stealing it. This is distressing. How should I respond?

She said I was the only one who had been with her pocketbook and that she was always very careful with her bag. I overlooked her subtle accusation

Your neighbor may have interpreted your not responding to her messages as a sign of guilt. You can reiterate that you are innocent until the cows come home, because I’m guessing her mind was pretty much made up that you were guilty after she “subtly” accused you of taking the ring.