The Fashion Police star was called a "liar" by her former co-host Osbourne

Credit: Jeffrey Mayer/WireImage; Jamie McCarthy/Getty

Giuliana Rancic is fed up with her former Fashion Police co-host, Kelly Osbourne, says a source close to Rancic.

After Osbourne told TheWrap that Rancic is “a liar” and said, “I don’t think she’s a good person,” the Giuliana & Bill star was baffled. “Giuliana doesn’t understand why Kelly continues to make disparaging remarks about her,” says the source. “They’re so ridiculous.”

Their public falling-out began in March, after Rancic, 41, came under fire for edited comments she made on Fashion Police. Osbourne, 30, failed to defend her co-host and eventually quit the show.

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Last month, Osbourne herself was the subject of public backlash after she made an offensive comment about the Latino community live on The View.

Now, says the source close to Rancic: “It’s obvious Kelly is just trying to divert attention away from her racist comments.”

Meanwhile, the mother of Duke – who turns 3 on Aug. 29 – “is happy,” says the source. “She’s not going to let Kelly’s comments bother her. She just thinks they’re pathetic. And she thinks Kelly should find something or someone else to obsess over.”