What was she accusing me of?

The choice indicating that she was accusing you of having stolen her watch is the most accurate transformation of the original question "What was she accusing me of?" This option conveys that the accusation involves the intent of theft, which encompasses a more serious implication than simply not returning, breaking, or hiding the watch.

The phrasing "having stolen" suggests that the action of theft is at the forefront of the accusation, highlighting her belief that you took the watch unlawfully. This implies a direct accusation about your intentions and actions regarding the watch.

Other alternatives present different scenarios that do not capture the severity of the original accusation as effectively. Not returning her watch suggests negligence rather than intent, breaking her watch implies an accidental action, and hiding her watch connotes a less serious situation that may or may not involve theft. Therefore, the emphasis on theft in this context makes the chosen option the most fitting representation of the accusation.