Faultless lady gutted with being misrepresented in false story (4-5)
I believe the answer is:
lily-white
'faultless' is the definition.
(I've seen this before)
'lady gutted with being misrepresented in false story' is the wordplay.
'gutted' means to remove the middle letters (to gut something is to remove its insides).
'being misrepresented' indicates an anagram.
'in' means one lot of letters goes inside another.
'false story' becomes 'lie' (I've seen this in another clue).
'lady' with its centre taken out is 'ly'.
'ly'+'with'='lywith'
'lywith' with letters rearranged gives 'lywhit'.
'lywhit' going inside 'lie' is 'LILY-WHITE'.
(Other definitions for lily-white that I've seen before include "Absolutely pure" , "Pure - irreproachable" , "Without fault" , "Totally innocent" , "Without blame" .)