To block or not to block??

I have always struggled with accepting friend requests on facebook from co-workers. Fortunately for myself and many others at my office, nothing is really blocked from our internet search hungry minds. Unfortunately all of those hesitant friend requests who you ended up requesting can see that you uploaded your pictures from last weekends shenanigans during lunch. Meaning they can see that you were on facebook when you probably shouldn't have been. Not too big of a deal considering obviously that co-worker is on fb as well, but still no one wants to be that person who everyone thinks is a big slacker and blogs and facebooks all day...ceratinly no me. Anyway, an aquaintance of mine from work had asked me when I was uploading my derby pictures to facebook so all the world to see. I had kind of disregarded the e-mail because I had made a specific group on my settings to include all of my co-workers and had set it up so that none of those people could see my wall postings, uploads, wall etc. Here's the thing, this girl was legitimately upset!! She wrote me a nasty e-mail stating that we may as well not be friends on facebook anymore becuase having her blocked from seeing most of my activity was a waste anyway. Ummmm....what the heck do you even say to that?? I had honestly figured that none of them would have even noticed. I would have been happy to make snapfish account and sent interested parties the link but we are at work here people!! HELLO, I actually do work occasionaly here! So my question to ya'll is what am I supposed to do now?? Do I just let it go and have her de-friend me (which by the way I think is the lowest thing possible) or do I just let her see all that I do?? It's not like there are terrible pictures or anything I just don't think it is a co-workers business what I was doing on the weekends. Am I wrong here?? Help!