Though she's ready to leave the situation behind her, the TV personality tells PEOPLE exclusively she's also not "going to sit there and perpetuate evilness."
"There's been so much drama surrounded by what went on at Fashion Police that I have chosen to keep quiet about," says Osbourne, 30. "I will [continue to keep quiet] because I don't think it will do anyone service, but I will say this: Giuliana is not often wrong. She really isn't, but it's been really, really heartbreaking to see her behavior that has transpired when she did get caught being wrong. That's what broke my heart."
Osbourne, who launched Fashion Police with Rancic, Joan Rivers and George Kotsiopoulos in 2010, promptly left the show after comments made by Rancic about Zendaya's dreadlocks at the Oscars caused a firestorm.
Rancic, 40, recently told PEOPLE her remarks were written for her and edited after the fact to appear racially charged.
"Do we really need to be wasting … time talking about three b—tches not getting along, or so you think? It's so small in the grand scheme of things," says Osbourne. "I want to make a difference in people's lives. I want to make people feel good, and I want to have fun. I just feel very lucky that I've been given so many opportunities."