I would be fuming. Sounds like you've tried talking to her repeatedly. Maybe it's time to tell the instructor that you are seriously thinking of not returning next session if he expects you to put up with this type of behavior by this lady& her dog. He can probably tell who is serious about this, and he won't want a good student to drop out - it's not in his financial interest to do so... come to think of it, he may just let her & her rude dog in class because he wants the $$$. But he should earn them by being professional. Professionals address problems, not ignore them.