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Refused delivery

I sold an item on 8 Feb to buyer with 0 feedback who I noticed had a completely different name to the one on the paypal account. For this reason, I made the decision to post the item by recorded delivery so that I could track it. Two days later, the tracking records showed that the address had refused delivery. The buyer has now contacted me to say that they have not received this item, despite the tracking records clearly showing this. I have not received this item back.  I'm not sure how to proceed as ebay's messaging encourages you to issue a refund to 'stay in good standing' when I've not done anything wrong.

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