Sister in law drama 😬😬

This is a long story, my husbands sister in law and I have a passive aggressive history I guess. When I was pregnant, 3 years ago, she had a lot of jealousy, she took a pregnancy test like 5 minutes after we told her and my brother in law and then the next day she had told me that she hoped I’d have a boy specifically because there hadn’t been a girl born in my husbands family (our husbands are brothers) in a while and she didn’t want me to have the first girl. Pretty soon after she found out that I was pregnant, and then having a daughter, she started lying about me to our in laws about really weird stuff like saying that I called her baby fat and called her some random day and told her that I had a list of all of the terrible things she does as a mom that I wasn’t going to do. My husband and his family asked me not to confront her about the things she was saying about me because they didn’t want it to cause a rift between them and her husband, so I just put up with it and it completely ruined any excitement or general happiness around my pregnancy- her lies were constant and never ending. Now my daughter is 2.5 and I found out that she told my in law that my daughter was having a tantrum and was biting and punching my husband. My kid has tantrums like every toddler but she doesn’t punch or bite, she’s never punched or bitten, when she has tantrums it’s really just crying and needing to be removed from the situation so she can breathe. Regardless, my husband said that never happened and that when our daughter had her tantrum it was because our nephew kept snatching toys from her and they both had to go and take a time out from the situation. I want to address it because it’s not fair for an adult family member especially to create stories about my 2 year old, she’s the absolute sweetest and most gentle kid I’ve ever interacted with and even when she has her meltdowns, she doesn’t become aggressive or anything. I guess I’m looking for advice on how to defend and protect my baby without causing a rift between my husbands family and their other son. I don’t want to further any drama or issues but enough is enough and something has to be done otherwise it’s just going to further impact my relationship with that family and my daughter emotional and mental well being. Should I say something to her and call her out? Or should I just completely separate myself and my daughter from them so there is no interaction at all? Or a combination? Or something else?? TIA 😊