How do u handle gossip abt yourself

I have this dear friend of mine , she’s extra possessive about me.. we work in the same office.. so this another friend told me that our colleagues have been gossiping that we two are dating each other and that we are lesbians.. I’m straight and so is she.. how should I handle this rumour.., and she keeps telling me that office staff is discussing this and that about me.. I told her please don’t tell me anything as It doesn’t matter? How else should I respond... she is even quoting names tellin me who said what