Dillion relaxed upon hearing the Innkeepers answer. It was not unheard of for Daolords to be nonchalant about etiquette, but whether or not they were was their prerogative. Regardless of her status or strength, unless she touched upon the Dao, she had to prostrate herself before them.
Now that he had told her to relax, however, she must not emphasize on continuing her display. Another very important rule about dealing with Daolords was not giving them a reason to repeat themselves.
She silently chided herself for ever doubting the veracity of the rumors regarding the Innkeeper. If she had not been arrogant enough to request an audience with the Innkeeper to further investigate the Inn, she would not have ended up in this situation.
Upon noticing Dillion instantly obeying his instructions, yet detecting the strong sense of fear and regret radiating from her body, Lex connected many dots and immediately came to a conclusion of his own about what was happening.
