I don't envy you Audrey. Work place conflicts are one of my least favorite things to deal with. Fortunately, right now I am in a position that keeps me out of politics fairly well. Best advice I have for you is that you take the example of your rude friend and remain too busy to talk. I think she's onto something there! Nose to the grindstone... button on lips! Smile on face... keep it shallow. At least for now. until the storm blows over.

I sure hope this helps!