I can hardly believe a previous poster who suggests teaching your child to vandalize property as an act of revenge. I doubt that you would, but please don't seriously consider doing that. Think "arms race," and how typical it is for those situations to escalate. And escalate.
Since this looks like it may become a chronic problem, I hope you'll take a look at the process of Non-Violent Communication. It takes some attention and practice, but can transform troublesome relationships into friendships. My husband and I have both learned the process, and find that it not only helps us see the other person as a worthwhile human being (and they DO respond to that attitude), but it helps us keep our own emotional house in order, putting ego into appropriate service instead of letting it run the show. Again, think "arms race," and how those situations tend to escalate.
As for the bullying, you'll be able to teach your daughter some NVC techniques, too, if you learn the process. It will serve her well. I know a number of kids in our religious community who are happy to have learned the process young.
But even before those tools are available to her, you can try the problem-solving techniques outlined in the wonderful little book How to Talk So Kids Will Listen, and Listen So Kids Will Talk, by Faber and Mazlish. The book describes real-life examples of how parents helped the child to address the problem herself. And though we don't usually think about young children in these terms. they can be creative problem solvers.
I wish you well. I'd be upset right now, too. But I would see light at the end of the tunnel.