Will you forgive me? NO!

Is it wrong to laugh at your 3 year old when they unintentionally say funny things? We went to Jennie's dad's tonight and watched Bolt. As we were driving home, Audrey was talking about it and kept referring to that boy and his dog. Apparently, she is unshakeably convinced that only boys can have red hair. Furthermore, the "boy" could not be named Penny, because pennies go in your pocket, they are not a name. It was slightly humorous at this point, but we've been having a little battle with rudeness and disrespect lately, and Audrey was terribly offended when we disagreed with her and I accidently laughed as she insisted that pennies are for pockets only. I tried to apologize and was met with an immediate NO!, which only made the whole situation even more humorous because she spit it out almost as I was finishing.