"I'd never heard of them before, either," Katara admitted, then flushed slightly when he commented on her name only to grow almost ashen when he spoke of his people being slaughtered. "That's terrible!" she exclaimed, eyes wide and the fingers of one hand going to her lips in a expression of true shock and dismay.
Next, it was her turn to be confused. Her brow furrowed slightly as she echoed, "Beastmaster? I've never heard of that title before." She was going to tell him about her title of Master Waterbender when she realized his pouch was moving.
Instantly, Katara went still. Her shoulders stiffened slightly and her gaze hardened a bit. She didn't seem hostile - not yet, at least - but it was clear for the first time since they're meeting, he'd put her on edge. Her attention flickered to the pouch, then back to him as her eyebrows rose toward her hairline.
"May I ask what you have in there?" she inquired in a polite tone, nodding toward his pouch. Too polite, according to anyone who knew her, meaning she was trying to not overreact in case the whatever it was turned out to be harmless.