Indignation: n. Anger or annoyance provoked by what is perceived as unfair treatment
Zuko had expected the "scuffle in the yard" to end when the prisoner, Chit-Sang, left, but he was surprised when the guard attacked the man. The guard, who was a captain, used a fire whip on Chit-Sang when the man wasn't doing anything wrong! Chit-Sang's back had been turned!
Zuko was angered. It was clear that this guard was acting unjustly. Zuko reacted impulsively. He took a step forward, not planning what he was about to do. Zuko wanted to interfere somehow on the prisoner's behalf. Then he felt a hand grab his arm firmly and a voice tell him not to blow their cover, reminding Zuko to think things through.
WHAT was he doing? Sokka thought to himself as he reached forward to stop Zuko's indignant outburst. Sokka had noticed the injustice too, but he didn't really care all that much for the unknown fire nation criminal.
And he was getting mad at me for acting on impulse! Sokka thought.
As the guard captain walked over to them, Zuko couldn't help but think about a group of bullying Earth Kingdom soldiers in a village far away. If I were still a prince of the fire nation, Zuko thought to himself, his face expressionless, this guard would be out of a job right now.
"Isn't that cute" The captain said. When he got no response from the two of them, the bully guard lifted his helmet and looked at them. Oh, Zuko thought, he had wanted a response to that?
"Uh, very cute, sir," Zuko said hastily to get the man's attention away from them.