The OP has already said she has been suspicious for some time.
If that was my sister, I really wouldn't be happy.
She may not know it is definitely true. But neither does she know that it isn't. I am very shocked to hear that many would just do absolutely fuck all if this was their sibling. This is why I would march around there, taking this source with me and having it out with the supposed cheater. You would soon know if it is true or not.
Saying things like "breaking up a family" etc, like it would be the OP's fault, well no, it wouldn't. It will be her SIL 's fault for deceiving and lying to her brother by dropping her knickers more than once and repeatedly breaking his trust.
Adults matter too. You can't just stay quiet to keep the family together for the sake of the children. If she is being a dirty little weasel, then he has every right to know. What about the risk to his sexual health? How is it fair to keep something so big from him, which could be damaging to his own health?
Nope, sorry. If my sister allowed it to carry on, I would lose respect and trust for her.