The girl I like knows I like her. Now she smilies at me when she sees me. What now?

I had asked someone who knows the girl I like to find out who she likes. The person I asked came back to me and told me she likes someone else. I told that person to tell the girl I like that I like her.

Today, I saw the girl I like. The girl I like told a guy in the class to find out if I like her and that guy asked me if I like her. I said maybe (he caught on that I like her). After, this guy was pushing me to ask out the girl I like to the city. I said I was busy and then he pushed me to her to hug her and I avoided her (thinking I might hurt her). After she found out that I like her from this guy, she was always smiling when she was looking at me which she never did before.

What does this mean?
Did I do wrong not to ask her out?
Does it seem like she likes me even though the person I asked told me she likes someone else?