How would you reply? read below.

There isn't enough information for me to give an answer. At a minimum I'd need to know the context of the situation, the nature of our work relationship, how long we've worked together, my feelings about said coworker and what our future mutual work requirements are.
 
One of my first days working at the newspaper, I passed a much older co-worker and she hissed at me, "brazen hussy!"

I wasn't sure I had heard that right and I was shocked. What had I done to have her say that to me? I was shocked and shaken.

Later, I talked to one of the other ladies who had been very kind to me and she laughed and said, "Oh, that's just Win! She's a real character and that means you were looking particularly young and attractive today. It's a compliment!"

When I did get to know Win, I found out that I liked her a lot. She had a really weird sense of humor and we became very good friends. And, yes, a new dress or a new hairdo would usually evoke a hissed, "Hussy!" or "Floozy!" and I knew I was really lookin' good that day.
 
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