Buyer refusing to Pay Return Postage After Item Was Returned To Me Marked No Such Address…

A package was returned to me stating the address was unknown. It was sent to the address she gave me which she says is correct. The buyer is refusing to pay the postage to have it returned from the UK back to Canada. She has now demanded a full refund. Do I have to refund her the cost of the item and the postage she paid, or just the cost of the item? 

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