Thanks everyone. Taking note of all the comments. Fordystar, I really appreciate the concern to help me get this thing sorted.
I already contacted Fedex and told them that as far as i know, the watch is genuine. I figured nothing good would come out telling them that I sent a fake watch. I still need to talk to another fedex personnel as apparently Fedex Canada has called them again saying that the receiver is insisting that the watch is fake.
I already PM'ed the buyer requesting him if he could stop telling fedex canada that the watch is fake.
If I were you I would be ****ing pissed off. WTF was the buyer even thinking?! But do take precaution in listing out too much details on the forum (perhaps you can edit and remove the past info). You never know when they track your posts to your IP address and screw you over and over. Hope things get sorted out soon!