"I am extremeley uncomfortable with current guests staying in one of my apartments."
When you feel uncomfortable, you have the right granted by AirBnB rules to cancel a booking.
However, if you are also a business, then other rules may apply to you depending on your country, perhaps according such other rules you may not be entitled to cancel a guest booking simply because you feel uncomfortable and more substantial and objective prove may be requested.
"The woman who booked has made false claims to AIRBNB that we have "Industrial size Air Con Units and she wasn't told"
This is utter nonsense. They are normal household air cons."
This is rillevant 'cause in case of negative review the mention the false, you may not be able to remove a review neither with the help of a lawyer, again it depends by the law in your country.
"She also complained that I did not leave Toilet paper or shower soap, which I did. As well as a bx of tissues in each toilet."
"When i arrived to address her complaints - (20 mins after they came) I was told through the door "we are in the middle of something come back in 40 minutes"
I declined and said now or in 6hrs when I am free again."
It's not clear if you were there for them under a specific request or if you simply showed up, then if you were rude in say "now or when I'm free again" then possibly you switched to the wrong side.
"After 5 minutes the door finally opened and the 2 women were hiding in one of the bathrooms.
What's that about?
They are not religious, my husband had checked them in and had already been again without anyone hiding."
not relevant, if they wanna hide in the bathroom they may have legit reasons that actually can not be prove
"How do I adress my concerns to AIRBNB?"
In the way in which you said before, declaring that you are uncomfortable with them and wish to cancel the booking
"She is already making false claims. She has asked me to accept cash to extend the booking, which I declined to do, citing AIRBNB rules - and she is a Host too!"
An infinite number of hosts operate on AirBnB without know the rules of AirBnB. I've had host that wanted to book third party without knowing is not allowed or wanted to pay cash for extra fees and so on.