Sounds like your in quiet a bind,maybe you should try to find out how your instructor really feels about you,then if what you have heard rumor wise is true,then just tell her you would hate to lose her as a friend and teacher,and would not wanna ruin that relationship by going the next step,and that you are also in a relationship with a woman you love dearly.I think if you are honest with her 100%..then she should respect you for that..make sure to be polite with her,and sympathetic to her feelings. P.S good lucj and keep us all updated on how it works out.