Visual art/"fine art" is just one kind of art. "Art" is conventionally understood to include many modes of expression, from music and sculpture to dance and photography.
Constraining a definition of art to hand-made visual art would exclude many of the most popular forms of expression from consideration as art: literature, theater, photograpy and music.
I would say that your friend has a semantic issue with the question at hand. My guess is that she takes the term art more narrowly than most and I would argue that this narrow view is both technically and conventionally incorrect. Aesthetically-oriented expression is certainly not limited to visual art.
Art... 4.a : the conscious use of skill and creative imagination especially in the production of aesthetic objects; also : works so produced