My sister in-law (20f) got drunk and came on to me (23m). How do I tell my wife (22f)?

So my wife has 2 siblings, a brother and a sister. I'll call my sister in-law Jane for the story.<br><br>Jane was staying with us for the last month before she started her first job after college (she graduated in December of last year).<br><br>My wife and I have always been the type to have a lot friends over. We like to have parties and game nights, so Jane was included in these (and was also invited to bring any of her friends that she wanted, which she did).<br><br>So the night before last, we were having a party and everyone got pretty drunk. That night, I was asleep in the guest bedroom (my wife and I have our own rooms because I work nights and she works mornings). Jane came into the room, and I assumed she needed to use the bathroom (there's an en-suite bathroom in the room).<br><br>She came in and started hitting on me, kissing me etc. I was asleep and startled, but when I figured out what she was doing, I got out of bed, took her by the shoulders, and guided her out the door. I told her "We can't do this, I'm married to your sister." <br><br>She started to say something, but I closed the door.<br><br>The next morning, I debated whether or not I should tell my wife. Eventually, I decided I had to tell her. She immediately called Jane, who told her she didn't remember a thing. My wife than asked if she did something to make me uncomfortable, and I told her what happened.<br><br>Jane got on the phone with me for a few minutes. She was very apologetic, and told me she was going to move out.<br><br>Later that day, she picked up the few things she had at our place and moved back in with her parents.<br><br>My wife is very upset, as expected. And I'm upset too. Not with Jane, but with the fact that this happened. I feel like this may have ruined any relationship I'll be able to have with Jane. Or with her parents.<br><br>&#x200B;<br><br>EDIT:<br><br>A lot of people are saying I should've seen this coming because Jane was 22 and "definitely into me." I just want to say, that's not true. We never flirted and she certainly never showed me she was into me. She was just a nice person.<br><br>Also, a few people are saying I should've told Jane off and been mean to her. I don't see why I should tell someone off who, at the end of the day, is someone I would consider a friend and someone I would care about. I just figured being direct and telling her we couldn't do anything was enough, which it was.<br><br>A few people have suggested Jane might've been passed out, and I didn't mention this before, but she seemed more or less coherent. She wasn't having any trouble walking or anything, plus she was talking and seemed to make sense.<br><br>Just to clarify, I never went to bed and was sleeping until she came in. I was drinking and passing out games until about 3am and then when to bed.<br><br>Also, just to add some more context, my wife and I have been together for 8 years, so since I was 15 and she was 14. We got married young, but we're happy together and we make it work.<br><br>Just to be clear, I didn't kick Jane out. She said she would be leaving because she was too humiliated to stay.