Would you be offended as well?

So I was speaking to my sister in law yesterday via text message about the baby im pregnant with we where discussing baby clothes and what not. Anyhow out of the blue she said "would you be offended if I tell you the truth if your baby is ugly?" So I responded by asking her to be clearer Incase I misunderstood her so she said again "will you be offended if I think your baby is ugly when she is born and if I tell you I think she is ugly will you mind". I instinctly held my tummy and simply said "I would be offended yes" then made my excuses and left the conversation. 
It made me so mad she could even ask such a insensitive Q never mind the fact she actually contemplating that her neice will be ugly. She is very superficial and thinks life is all about nice looks and nice clothes. I know she told her sister that her son was ugly when she had him aswell. She doesn't have her own kids yet but I hate to think how she is going to be when she does if she can think of such petty things!