I'd speak up- sorry, didn't even notice. Maybe you shouldn't sit that close to me if you're that sensitive to touch.
Obviously her issues- not a professional reaction form a T (PhD or not). Gee, I have a problem with closeness/touching (that I'm working on in therapy), so I would definitely notice and reacted- politely!- seriously, her reaction was totally uncalled for.

IDK, I'm with Chris... for me even no T would be better than this one:/