This is a hard one, obviously that lady wasn't thinking at all... because what she did was rude. I don't know what I would have said
I have had people pick mine up from the ground (which drives me crazy) I held my arms out while we were still talking and they usually just hand them back with out thinking or having to say anything it is like they are just reacting to my gesture to hand them back. I don't know if it makes sense how I explained it but basically they do not hold them for more than a second and get the point that I would like to hold my own dog but go ahead and ask me whatever you want about them. I find that being rude back doesn't really make me feel any better.