Couple of douchey teachers.
Anyway, it's surprising she'd get upset that he didn't let her grope his actual hard dick. I get that she's super sheltered and all, but c'mon... really? She's supposed to be a pretty intelligent person. She may be thinking of all this from an non-sexual educational perspective, but she's also only taking her own perspective into account. Hell, he's even explained his thoughts on it multiple times.
I thought his solution was a pretty good one. Although, maybe his follow-up was a bit lacking. I can only think she feels like he's lying to her or something; which doesn't make sense.