This lady is way fancier than Cloud is, some kinda nobility, he guesses. Or maybe that's just how people are where she's from. He doesn't make any move to also be fancy, but he does give her a nod and stand up a little straighter.

He's never heard of wherever she's from, but hey, it's a big world. Interesting that she and the island or whatever that she's from share a name, maybe her family founded it or something? He's not going to pry into the life of some lady he just met, but maybe he can ask her about it later.

"Nibelheim," he says, about to just leave it at that, but it seems a little... short and blunt compared to her introduction? Is that rude? He doesn't really care, but he has a feeling that it's something Tifa would be annoyed at him for if he just left it at that. "I'm not really settled down anywhere right now, though."