Hodges looks deeply chagrined and like he wants desperately to make things right, but when Wendy tells him he's the dumbest smart guy she knows, he responds with, "You think I'm smart?" Oh, Hodges. If you didn't fail so spectacularly, you wouldn't be the special snowflake you are. I really feel for the both of them here. He is crushing on Wendy hardcore but he's like the unholy lovechild of Michael Scott and Dwight Schrute so he inevitably f**ks things up anytime he makes any forward progress. And Wendy kind of digs Hodges but he's weird and kind of creepy and sometimes assholeish, so she's uncomfortable about being attracted to someone like that. So when he f**ks up she gets angrier than she would at anyone else, because she's also angry with herself for letting him get to her and for dropping her guard in those rare times when he's not being a ginormous tool. It's really funny and really sad all at the same time, and I hope those two crazy kids make it work.