Awww I’m so sorry MTG! He sure is a sweet pup.
@AGBF, I really feel for you we had a Shetland Sheepdog mix for our first dog and he was extremely dog aggressive with dogs he didn't know. He was also a rescue, it's too bad this woman can't keep in mind that you don't have the advantage of knowing his full background, that's just not the case with most rescues though.
We were never able to resolve his aggression so walks were few and far between. No real advice but you were obviously the bigger person here, your neighbor is not handling this in a very mature manner at all.
Although the neighbor yelled about Hero's past misdeeds (that he had bitten another dog, that he terrified her daughter) he has never bitten a person. But everyone hates him for his barking and because he looks aggressive. He actually loves people, he just doesn't like other dogs.