I would probably reply with just a "Yep" and then either walk away and talk to someone else, go grab a quick snack or use the bathroom and take a quick deep breath. Ignorance is bliss! I have a neighbour that asks me that every time they see me which is multiple times per week and I answer with "yep" and then turn away or keep on walking. I don't care that they understand the difference and don't care to try and explain to them the difference either.