@Braunson1 Reviews can't be edited once they are published, and I'm not sure what you would want to edit if your review was honest. I'm glad you didn't go along with the host's extortion attempts to not leave an honest review- that is such an unacceptable thing to do and reviews should always be honest, otherwise they are pointless.
Here is what I would do if I were in this situation. First of all, do not agree to pay for damage you did not do. Pay no attention to some nebulous message from Airbnb about it affecting your future bookings.
However, this is an experienced host with good reviews, so it seems odd and rather unbelievable that she would falsely accuse you of damage just because you said it wasn't clean when you arrived, but also noted that the host did come rectify the situation. It's possible to damage something without realizing it, you know. Not all damage is purposeful or due to bad behavior. If there were more people staying with you than just yourself, it's quite possible that one of them damaged the blinds without you being aware of it.
The host actually left you a good review. What you are referring to as a review is a response to your review. However, a host's response appears on the host's review page, not on yours. So future hosts will never see it unless they cross-reference reviews.
Aside from the issue that you say she has accused you of damage falsely, the host's response seems quite professional and reasonable. If she did actually come over and deal with the cleaning , why did you feel it necessary to detail all the cleaning issues?
Neither hosts nor guests are perfect- the important thing is that when there is an issue, it gets suitably dealt with. People need to cut each other a bit of slack if it's obvious that someone has tried to make things right.