Diabetes is a well-recognized risk factor for ED. A systematic review and meta-analysis found that the prevalence of ED was 37.5% in type 1 diabetes, 66.3% in type 2 diabetes, and 52.5% in diabetes overall—a rate approximately 3.5 times higher than that in controls.  The etiology of ED in diabetic men probably involves both vascular and neurogenic mechanisms. Evidence indicates that establishing good glycemic control can minimize this risk.
I'd recommend the second option. In any long-term relationship, there will come a time when you flirt a little too much. Technology makes those little transgressions seem much more major because there's digital proof. (I'm guessing that you would never have flashed him in the real world. Would you?) Maybe you should just learn from your experience and save your boyfriend the drama. Understand that you made a mistake, and keep your breasts to yourself.
The neurologic pathways required for erection originate in the cerebral cortex where visual, auditory, and psychic stimuli are processed, and in the pudenal nerve, an afferent nerve that transmits tactile sensations from the genitals to the sacral segments of the spinal cord and cortex. Efferent signals from the spinal cord pass along the pelvic parasympathetic nerves and dilate the corporal vessels. The specific neurotransmitters have not been fully defined; acetylcholine, and perhaps vasoactive intestinal peptide, appears to be important. There are many causes of neurogenic impotence. Anything that disrupts neural pathways or blocks neurochemical transmission will have an adverse effect on erection. Psychologic factors probably interfere with erection by inhibiting corticosacral efferent pathways.
Tests such as the bulbocavernosus reflex test are used to determine if there is sufficient nerve sensation in the penis. The physician squeezes the glans (head) of the penis, which immediately causes the anus to contract if nerve function is normal. A physician measures the latency between squeeze and contraction by observing the anal sphincter or by feeling it with a gloved finger inserted past the anus.
That means that as an adult, you need to activate the opposing parasympathetic system through sexually exciting visuals, thoughts and touches to get an erection going. But this nerve transmission is disrupted if you're stressed, anxious or distracted. The latter because you simply don't develop enough total stimulation of your genitals to get an erection, and the former because stress and anxiety all increase adrenaline – a key transmitter in the inhibiting sympathetic nervous system. They quite literally sabotage your erection.
Having erection trouble from time to time isn't necessarily a cause for concern. If erectile dysfunction is an ongoing issue, however, it can cause stress, affect your self-confidence and contribute to relationship problems. Problems getting or keeping an erection can also be a sign of an underlying health condition that needs treatment and a risk factor for heart disease.