It's a testament to the man of wits (the kilter) when he chooses his response. 1, 2 or 3.
3. He could be confrontational;
2. he could be evasive; or,
1. he could engage the would be antagonist in an intelligent conversation. Allow the mouthy one to show his intellect further, as either willing to converse and learn (which would certainly impress everyone, including himself), or preferring ignorance. Yours was #1.