What happens between fluellen and macmorris in henry v?

Captain Macmorris and Captain Jamy enter and Fluellen offers Macmorris (whom he scorns) advice. They get into a quarrel, but end it since they realize there is a real battle going on.

They are besieged and Macmorris and Jamy are under great pressure. When Fluellen attempts to give them advice and point out the obvious problems with the situation Macmorris takes great offense........ to which Fluellen takes great offense. The text from No Fear Shakepeare goes as follows;

FLUELLEN

Captain Macmorris, I think, see—correct me if I’m wrong—there are not many of your nation—

MACMORRIS

My nation? What is my nation? It’s a villain and a bastard and a coward and a rascal. What is my nation? Who talks of my nation?

FLUELLEN

Captain Macmorris, if you take my words in some way other than how they were meant, see, I’ll have to think you’re not treating me with the good will you ought to, see, since I am as good a man as yourself, both in the practice of war and in my country of origin and in other respects.

MACMORRIS

I do not know that you are as good a man as myself. So, by Christ, I’ll cut off your head.

GOWER

Now, now, both of you gentlemen! You go out of your way to misunderstand each other.