This text is kind of ambiguous...I think she is a little confused and she doesn't know whether to accept or not his embrace or she doesn't know how to tell him that she doesn't want to be held in his arms... I just wanted to explain the meaning of this text, just in case
The second variant is less plausible because she already says she misses him...so it's a case of not knowing what to do: to accept his love or not or to recognize she is in love too.