Arthur pauses as he brings his drink up to his mouth - this is unexpected, but he should have known meeting someone from the underground was more likely at Lancelot's than most places. He's clearly having to turn this over in his head, and he doesn't look at Kathryn as he finally takes a swig from his drink.

"I apologize, I didn't realize either of you were associated with Daybreak," he says. He almost tells her it's bold of her to say that to someone who has no magic on him, other than the enchanted watch Eames gave him, but maybe she can sense that and it's not like she just came out and said she's a witch, which is what he assumes now.