Dementia Neighbor Accused Me Of Stabbing Her

Location: Alabama

Sorry this will be long but there's a tl;Dr at the bottom.

I live in a small town that's part of a larger metropolitan area but is still technically its own thing. This is important later.

My next door neighbor is an elderly lady we will call DN that lives by herself and is deep into dementia. When I first moved in several years ago she was really sweet, very neighborly but over the last 3 years the decline has been pretty brutal to watch. The past year has been especially bad since she's convinced that people from her past are living in her attic only to come down at night and steal her items so she calls 911 a lot. To the point the police barely respond to her anymore. I've sat out back and listened to the officers talk with her and she says some pretty wild. Talking about people shooting up drugs in their neck in her home and spraying blood everywhere. But she constantly requests police reports from them so that she can get warrants on these people and have them thrown in jail so they'll leave her alone. The officers, from my understanding, either tell her no or they say they will and don't. It's been a long standing point of contention between her and the police.

She's also at the point where she will be randomly wandering around in the road. About 2 months ago, I heard a car horn outside so I look and see DN outside in the road. I run out and guide her back to her house, help her get inside. A couple days later, there's a knock on my door and the local PD is there. They say they got a call from DN saying that I had been inside her house. I told them that yes I had seen her wandering in the road and helped her inside her house. They said okay well maybe don't do that anymore which struck me as a little odd. The next day, she's outside and I avoid her. The day following, another visit from the cops, this time she says her neighbor (me) broke into her house last night. They didn't see any signs of break in but they wanted to talk to me about it just to be sure.

This goes on for a month. Officers will ride by, knock on my door and say yeah she's saying you did it again. According to one officer, she's getting increasingly agitated because she knows they aren't arresting me and she's demanding that they do. It dies down a little and I hadn't had a visit for about a week and a half until last night.

Last night at about 9pm, the cops bang on my door. They ask me if I've been home all night, I say yeah. I ask if DN is saying I broke in again and the officer says yes but this time she says I stabbed her. The problem is that she has a wound on her arm. Sure enough, fire and medics come up to her house and she leaves for the hospital in an ambulance. My guess is she somehow injured herself accidentally and couldn't explain how it happened so her dementia brain defaulted to "neighbor must have stabbed me".

I answered all the officers questions, told them I've been at home all evening gaming with some online friends (I live alone so nobody in person to vouch for me). They asked if I had any knives in the house and I said of course but if you want to take any of them they'll need a search warrant. They said that probably won't be necessary but they'll get one of they need one. They left after that and I haven't heard anything from them and my neighbor isn't back home. I'm kind of freaking out though because a charge like that would ruin my career.

1) Realistically, what should my next steps be? Am I likely to face charges from this?

2) What can I do to get this harassment to stop? It was kind of annoying at first but nothing I couldn't handle. Now it's something else entirely.

TL;DR my neighbor with dementia has been accusing me of breaking into her house for two months with no repercussions on either side. Last night she accused me of stabbing her except she actually had a wound and now I'm afraid the cops might be taking this seriously. What do I do?