I think this is very sad.

Please don't worry. Little ones can say very hurtful things that they don't mean.

A few weeks ago, my 3 year old DGS said, 'I don't like you Nanny, you make me sad, but I like Grandad!' Then, just last week, he said to DH - who he absolutely adores - 'I don't like you grandad but I love Nanny!'

Ooh, they can press our buttons at times.

Oh dear take it with a huge pinch of salt she's only a babe and probably doesn't have the sophistication of lying yet
Carrying on visiting and forget it was ever said don't be sensitive to the words of a little one .....they say funny things like why have you got all those lines on your neck or my little grandaughter who one day was very cross with me and knowing I can't drive through bad eyesight hurled a screaming insult of 'Nana no drive eyes you're making me so cross'

OP what did you say to her when she said that?

One day dgd2 said I had a funny face and was ugly, the next I was beautiful and she loved me. Best ignore it and visit together as usual.

I wouldn't take such a young child's declarations to heart - my DGD(8) recently said that I was very old (I'm 62) and DGS(11) leaped to my defence and declared that I was indeed old, but very acrobatic!