She just kind of shrugs at the question; Indigo's accepted that she's not going to fit in no matter where she goes. She's still sad about it, but she's accepted it.

As for the mud question... well, that's kind of close to what she's doing?

"Sorta! You know how clay is all soft an' moldable when it's wet, but when ya bake it it gets all hard?" That's not exactly what she's doing, but the concept of molding something soft and wet into the shape they want, then drying it so it becomes hard, is the same.