Yep, in the exercise, you entered your living room and find three guys. I had drawn and challenged. Two complied and one walked towards me slowly smiling and saying he didn't speak English.
The instructors are seeing if you could think on your feet and respond when the opponent doesn't act in a cliched fashion to your manliness.
After a couple of challenges, I shot him. I might have backed out of the living room and fled but I chose not to. Backing up is bad.
It was kind of a slow-mo Tueller drill. Makes you think.