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Just keep it simple and avoid the bullshit.
Removing her pics won't kill your business. She offered to pay you to remove them.. that removes any suggestion of extortion.. don't even know why that term was mentioned..
It's a business.. she approached you in a business manner as mentioned earlier.. Take her up on the offer and let it be history. In a week you will have forgotten all about the issue.
Sure she signed a release, but as you said.. she's young and things happen..
Just sell her the rights to the pics and make sure she signs off on releasing you from any liablilities as a result from the pics being on your site for the time that they were on.. Then if she finds those pics on other sites, it's up to her to deal with it and you're out of the picture..
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