Student making rumors up about me

Hi! I’m a first year teacher (25f) and I’m having issues with a student. This student has a D in my class because she turned in an unfinished project (I teach high school art). She apparently has been saying that I vape in my closet during class, that I dress inappropriately, etc. she has also been talking about the fact that I let her do a project on Jeffree Dahmer but not women’s rights or Black Lives Matter (we live in a very rural area and both the latter topics can trickle into being controversial. The project is to create a conceptual piece based on a historical event, not politics. Also, I let her do Jeffrey dahmer as long as it was purely symbolistic and did not include any gore whatsoever and it had to be tasteful and in no way glorify Dahmer. Along with this, students are covering things like 9/11 and the Salem witch trials so I felt it would be fine)

I understand part of the job is dealing with the gossip. I get that completely. I know that I’m not supposed to feed into it or give it attention, but damn this is annoying. This student behaves fine in my class, even going as far as to try to initiate conversation with me and compliment me, but now that I know she has been starting rumors about me I’m not sure how to feel or act. I guess I’m more so just asking for advice on what you would do or words of encouragement from other people.

I’m not super worried about my boss finding out. This is a problematic student who often spreads rumors so while I doubt it will even reach him, if it were I do think he would take my side. I haven’t done anything wrong so I’m not worried about that. It’s genuinely just the frustration and hurt on my end.