What is the most appropriate thing to do in this situation?

Dont know what country youre in, but basically this advice holds true everywhere: If someone weirds you out, or you dont like a particular response, then stay away from them. There are certain countries who do not have the same problems with being completely honest with you, even if it might hurt your feelings. Like Germany, for example. best you can do would be to reply in kind. Tell her shes rude, and you dont want to work with a rude person.