"It wasn't full blackface and it was also brown body," Matilda said, while Art added: "Actually, technically it was Indian, so would that be yellow face?"
The pair faced a backlash after the 2015 incident, which saw Matilda comment "Best night with this chocolate-covered treat" on a photo of the smiling couple.
Matilda Green described Art Green as her "chocolate-covered treat" after the 2015 party. Photo / Norrie Montgomery
The 2018 interview was shared on TikTok by user Nadia Darby and soon drew Matilda Green's attention.
Addressing the controversy, she said the couple had been "ignorant and young and stupid".
She said it was "so embarrassing" and said that the comments were "jokes", noting that "we all laughed".
"That's the thing about the internet, past mistakes are around forever," Matilda said.
"I'm just embarrassed and I wish I didn't say it."
The star neglected to apologise when she first addressed the video, but returned shortly afterward to say sorry.
"I realise that I missed the actual apology in my last story. It's not because we're not sorry, I just missed it," she said.
"Art and I are very sorry and the last thing we'd ever want is for anyone to be hurt by anything that we've said."
Following Matilda's apology, Art later took to his own Instagram account to say sorry for the incident.
Speaking on his stories, the Bachelor star said he feels "really disappointed" in himself.
"This is something that I feel really disappointed in myself [about], that I said these things and acted this way, and to think that it was okay to do that, and to think that it was funny to do that when in actual fact it was racist, and I was being racist, and I want to apologise to anyone out there who feels hurt by what I did," Art said.
He added that he is "very sorry" and that he "would never consider even thinking about or doing the same things ever again".
"I know that it's racist, it's not right and it's not okay."
