I am going to refuse to dance with a girl.
What makes you want to refuse to dance with her?
I want her to feel hurt by this, she used to tease me in high school.
Rejecting people is necessary to maintain personal boundaries and control over one's own life. If someone did something to you in the past, it's okay to not want anything to do with them later on.
I'm going to embarrass both of them.
It sounds like you want revenge, which is not okay. Just tell her firmly and politely that she was mean to you and you don't want to dance with her. There is no reason to be hurtful.