Should I fight a friend?

[KMac4]

Yeah, so at the bar tonight, lots of drama unfolds. I'm buzzing hard throughout the night, and I talk to a couple of chicks, and then suddenly, drama unfolds... somebody says that I called one of my good friend's girlfriend ugly and that she left the bar in tears.
I do not believe that I said this directly, and that there might have been a misunderstanding to what I said... who knows. I am an [censored] overall, but not to the state where I'd call a good friend's girlfriend ugly to her face, particularly if I don't think that is the case.

But word on the street is that my friend literally wants to fight me. I honestly think that I would beat the living piss out of the guy if we were to fight. When we work out, I lift considerably more than him in every aspect, he doesn't know any martial arts or any other fighting form, that I know of.

I consider the guy like family, but I guess "[censored] has hit the fan" and that many of his friends now hate me too, and he wants to fight me.

I don't know if beating this guy up will be the right thing to do.