i don't think any word in it's own right can be deemed offensive... it only becomes offensive when taken into mind the context it is used in. she clearly meant it as a joke - mistimed and stupid, maybe - but it was not meant in a bad way. so what's the big deal? and if you read the transcript (below) it contradicts itself...
This is a provisional transcript of the conversation between Emily, Charley and Nicky that led to Emily's departure from the house.Emily: (referring to Charley dancing/pushing her hips forward) You pushing it out, you n*****.
Nicky: (shocked laughter) Em, I can't believe you said that.
Charley: You are in trouble.
Emily: Don't make a big thing out of it then. I was joking.
Charley: I know you were... but that's some serious s***, sorry.
Emily: Why?
Charley: Oh my God. I'm not even saying it.
Nicky: Just don't talk about it anymore.
Emily: I was joking
Charley: Do you know how many viewers would watch that?
Nicky: OK, don't make a big deal out of it.
Charley: Fancy you saying that. I can't believe you said that.
Emily: Somebody has already used that word in this house.
Charley: No way. (Pause) Yeah, me. I'm a n*****.
Nicky laughs.
Charley: I am one. Fancy you saying it. I know maybe you see it in a rap song. Maybe you and your friends sit there saying it.
Emily: I'm friendly with plenty of black people.
Nicky: And you call them n*****s?
Emily: Yeah and they call me n*****s. They call me wiggers as well.
Nicky: I'm quite shocked.
Charley: I'm f***ing in shock.
Emily: It's not a big deal though, is it?
Charley: Not for us it ain't. F*** me.
charley refers to herself as a nigger... so if all's fair, shouldn't she be kicked out for using the N-word as well?