My ex friends PayPal account was signed in on my phone and I didn't realise as I thought it was mine as I didn't save her details to my phone at all. So I don't understand why it used hers and not mine and I'm willing to give her the $9 back but she is still charging me with theft. What will happen to me? Will I go to jail
$9? Firstly she cannot charge you with theft, that is the police discretion. Have the police actually contacted you? I would be surprised if they did over $9
If for some strange reason this does proceed:
Your story is plausible. Do you have evidence (sms, e-mail or a friend) that can verify your friend used your phone to log into her Paypal?
Perhaps you could transfer her back the $9 via internet banking (or by some other means) and then follow up with an e-mail or sms to her saying something to the effect of "you forgot to log out of your Paypal on my phone when I let you use it and I accidentally made a transfer for $9, I have sent you back the $9 via X".