Well at this moment I like being single. In life you may encounter a few people who fancy you that you're just not in to. Some girls I've met I get hints that they might like me (or not). When I'm with some of these girls I think to myself "I don't think we're a match" and I just don't encourage the flirting. There was one girl some time ago who tried to hit on me when she was drunk. She said to me "I may drunk too much, if I'm not careful, I may kiss in a minute" I literly didn't know what to say... :/
Depends on the situation, the one you describe in the OP I would just laugh it off and drop a hint that I wasn't personally into it. It has happened that a girl straight out told me that she was into me after a date but I didn't feel the spark so I gently explained that to her, that she was very cool but I personally couldn't see us working.
Yep, you can just laugh and say let her know you aren't into it. Always go with the truth. The truth doesn't have to be cruel or harsh though. It can be compassionate and still be the truth. "thank you for sharing your feelings with me, but I think we are best as friends" "I really appreciate you as a friend, but I don't think we should date" "I find you really attractive, but I don't think we have the right chemistry" Most people will rather be told upright than you stay silent. No one wants to make other people feel uncomfortable.