I guess I'm too direct and I'd tell this lady that I'm paying for the teacher to teach. I'd also feel compelled to ask why its taken three years to learn the basics with the same class. Rude people bother me and I have no problem being rude right back.

Keep going to yoour classes... I agree that you can't let a bully push you out of something you enjoy and something that helps you bond with your dog.

When you're doing your figure eights and she criticises you, have you tried saying, "Excuse me, but I'm trying to attempt a figure nine." Say it with a straight face and sweet sincerity and continue on your way as if what you said wasn't the most absurd thing in the world!