It's a long moment before Katara responds to that. It was new information - surprising information, really, but it makes a certain amount of sense. She'd never seen the General, but if he were like the other Malnosso, then they were all trapped here themselves... if Buffy had something of his from his home, or something of his that helped him remember someone he loved...

...it was terrifying moments like this, when Katara realized that the people they were fighting against, the people she had killed, were people just like her. She'd made her choices. They'd been trying to kill her, and the people that she loved, so she'd killed them instead. But the thought that the General had something he considered precious was a bit like finding out Ozai had a favorite pet. (He hadn't, of course.)

"If it was me, and someone I fought had taken away something I valued," by an effort of will, her hand does not go to her necklace, "if I ever had the chance to fight them again, I wouldn't be interested in talking. I'd just want to take it back."