I aint in a position to tak about relationships at work, cos I did it... but in general it isnt the best idea.
But in this sitution I would have just said in a semi-joking way "well, yeah... I'm only human" or whatever and see where it leads. If you like her and she is obviously being quite flirtatious you may as well see how it goes...
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"Do not tell lies, and do not do what you hate,
for all things are plain in the sight of Heaven. For nothing
hidden will not become manifest, and nothing covered will remain
without being uncovered."
The Gospel of Thomas
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