Don't cry. Wash it again in cold water. Put it in the dryer on LOW for a few minutes. Take it out and lay it on a clean floor and stretch it out a bit so it looks square and pat it down. When it is ALMOST completely dry put it back in dryer on air. Actually the photos don't look so bad and you are going to fold and wrap for Christmas anyway so your MIL will not even notice. She will just love it because you made it for her.