I think we have all had to deal with someone like your neighbour!
If she wants to be so ignorant, let her! If she's stupid enough to be asking above the market value for her flat, that is her problem!
The fact that you tidied the bit of garden in front of the flats will be working more to her advantage than she obviously thinks and next time she shouts at you for placing a pot of flowers somewhere, I'd ignore her - it's not her garden, she has no right.
All in all, she is probably just a sad, lonely woman, possibly in financial difficulty because she can't sell her flat but being very unfair in blaming you - she would have been aware when she bought her flat that the one below was social housing and probably got her flat cheaper than she would have anyway!