Should I be offended?

When something like this happens, I know its time for a shave.

Random (Asian) dude at bus stop: Is Pakistan sunny?
Me: No more sunny than Texas, probably.
R(A)DABS: What was that?
Me: I am not from Pakistan. I am Indian.
R(A)DABS: Oh! I am sorry. (pause) Wow! I am glad I didn't mistake a Pakistani for an Indian. That could have been complicated. Indians are peaceful people.
Me: Why do you care if Pakistan is sunny?
R(A)DABS: Uh, I thought if its sunny, it should go help the sunny people in Iraq.
Me: Umm, I guess.

I realized later he meant Sunni.