[It's such a strange reaction that it momentarily distracts her from her own upset, at least in part. Obviously he's loathe to openly admit that he cares about Raylan; that much is clear. But why? It's not like it's a secret that they're close - they're always together.]

You think I make death on him, to-- to fight you.

[To hurt you, she means; fight is just the closest word she knows right now.]

Yes? You're afraid of me, and it's good you're afraid of me. Are you afraid of I that know? I know now.

[She figures that her grammar is wonky, but hopes that her meaning is clear regardless: if he's trying to keep her from finding out that Raylan matters to him, he shouldn't bother, because she already knows. The damage is already done.]