[He doesn't miss indirect questions, not in the least and there's a moment of hesitation, but here? It doesn't seem wrong to answer.]
I wasn't the one who did. It's Edna who does. [Remember miss tiny terror? For once he's talking about her in total sincere respect.] Her brother is a dragon we encountered while looking to meet her at the mountains.
Yes, which was a lesson in "not so easy to fight", to put it lightly. No thanks is right.