"In no way did I intend to imply that they didn’t work hard, that they didn’t put in the long hours, that they didn’t focus on the task at hand."

First, that is complete b*llsh*t. Second she is still avoiding acknowledging the result of that work - by doing so she is continuing to say that they didn't do their job. 
.
Given the taint of her "origin" scandal and now this, she should resign.