Should I be friends with my niece again?

me and my nece have been friend's for 13 years now we use to do everything togather!!!!!!!!!!!!!!!!! we love each other!!!!!!!!!we meat when we were 3 but one day when we were 10 she meat this guy, and she was inlove with him!!!!!!!!!!!!! sheed do anything for him but I didnt like him because he was no good!!!! he always salein drug's doin drug's and alway's fight'in!!!!! soo, one day we where hangin out, and he tryd to talk to me and touch on me to so I ran and told my friend,she said you'r lieing why would he want you when he has me!! and she wanted to fight me so, we stoped talkin after that and she never said sorry after she fond out I was tell the truth 3yr's later she's wants to talk to me now but im stillup set about it!!!! what should I do about it???

First I want to say that im srry that this has happened b/w you guyz... I think that you should talk to her and tell her how you feel if you guyz are really good friends you shouldn't let guyz get in the way... me and my friends always say friends before misters! anyways juss talk to her and tell her how you feel and dont do all the talking ask her how she feels...
hope you guyz could work things out