What do I do? Buyer "disappointed" with item but hasn't said what they want me to do

[Notnowbernard]

Sold some kids trousers (for 99p)
Buyer received, says has noticed a small hole (I can't see in the photo she sent but have no reason to disbelieve her)
What's best to do? Do I refund?
If I refund how do I do it? Would I refund item cost and postage?

At this point it's all about protecting your feedback & seller privileges.

I would ask nicely for a photo & probably Ask her what she would like me to do.

If photo confirms & buyer wants refund, I would go to Ebay resolution centre & say 'Buyer & I agreed a refund' and I would go thru steps provided; postage will be refunded but given the low value there's no point in getting item back to try to resell.

If I thought buyer was larking me about I'd put them on my blocked buyers list.

Thanks
I've messaged her, apologised, asked her if she wants a refund.