You missed out
"And what do you mean by that?"

which means:
I know perfectly well what you mean , expect you to recant and apologise and whilst you do I'm thinking of a suitable revenge for you if you do apologise and an even worse one if you don't. I will also be in a huff for the rest of the day and say "that's fine", "Go ahead", "If you want to", "do what you like"... and sulk.