A.) Working in mall security for almost five years I have been exposed to dozens upon dozens of mentally ill/handicapped people. It's always awkward at first because you don't know how to react. Once you get over the initial first meetings you just become comfortable with the fact that people are different.
A good example would be this woman, about in her mid-forties, comes into the mall and is sitting in the children's play area. It's this rubber/foam circular area where kids can jump around and the parents can sit and take a break. This woman, with no kids, keeps grabbing the kids and saying, "Now, Mrs. Gregory is asking you to stop being so wild. We should all just sit in a circle and sing. Lets sing!". The parents were freaked. I get there and she is trying to take this one kid out of the play area and to her car saying, "Now, Mrs. Gregory is going to have to discipline you!". I start talking to her, "Hello, miss, I'm with security. Is this your child?" She stares at me for a good thirty seconds before speaking and says, "The aliens...with the red laser guns are coming...I have to leave!" She lets the kids hand go and starts walking really fast to the exit. So, in my usual curious manner I walk alongside her asking, "What do these aliens look like? What planet are they from?" She answers, "They look JUST LIKE US! They are from two galaxies over from us. The planet is not able to be pronounced in our language! Now, if you'll excuse me...I have to go before they shoot me with the red laser guns!"
She walks out of the exit. I'm figuring she took the bus. No. I see this woman walk to this tiny compact car, I think it was a Geo, and drives away. Though she is driving VERY SLOWLY and ends up going over one of the islands in the lot and her car actually got stuck. So, we had to call the police and I got to palaver with her some more. "Do you think these aliens will attack the mall? I need to know for the safety of the mall patrons". Her eyes were really large, and dilated. She kept swaying her head from side to side like she had a nervous tick. "Oh, no they would never do something like that. They are mainly a very PEACEFUL RACE. They stumbled upon our galaxy about twenty years ago and are fascinated with the way we live. Though a select few are subjected to their red laser guns. THEY REALLY HURT!" She was getting pretty agitated at this point, though she seemed pretty educated when she talked. Thankfully the cops came. Later we found out that she was off her meds and took her daughters car out for a joy ride.
That was the most intense case. Most of the time it was just the average weird guy muttering to himself and just freaking people out. You ask them to leave and they would leave.
B.) I form opinions on all three of those options really. It's more of what environment you were raised in. The values you were taught, etc. Also it's just about your emotions and how your personality is structured. Such a combination of things.