Here's the response I would make:
The statement is not being offered for its truth, but to show the plaintiff's reasonable fear which is a material issue related to emotional damages and to civil assault.

Next, Miss Management testifies for the defendant. She is asked what Sammy said about settling the case If I were objecting, I would base it on rule 408 (offer to compromise) rather than hearsay. If there were a hearsay objection, what response(s) could the defendant make? See if you can think up two. When you think you know the answer, click here to continue.