I would suggest watching Scott Adam's youtube video breaking down this video. He does a really good job of analysis.

What you see in this video is a woman who has a certain world view and ideology that is conflicting with the words being spoken, so she continually mis-hears everything. And several times, her thinking process stops, and she has to reboot.

Ah, found the video:
Scott Adams on the Cognitive Dissonance of Cathy Newman