What is the perfect way to respond to an insult/confrontation?

[Diana]

It boils down to feeling the emotions or catalyst and not repressing it, and acting in a natural manner. If the action would harm another it is better to be imagined than physical.

This is basically the key to handling anger and confrontation.

I will add that it requires detachment, and that can be summoned by taking responsibility. In the case of being offended, we must take responsibility for our reactions, for example. The idea is to become the observer.

It also helps to go over the ho'oponopono words:

I love you
I'm sorry
Please forgive me
Thank you

The reason I think these words are so powerful is because it changes the perspective. If you are feeling victimized, this brings up the idea that you have a role in it. If you are angry at someone, this brings up the gratitude you may have for other things about that person. And it gets right to the point of focusing on unity rather than separation in the first line.