Insulted or Swallow your pride?

At least you got your foot in the door, with your education and experience. You are going through a prove your self again. It is growing pains. If you do as well as you did in the military. You will grow to higher responsibility.

Patience is a virtue

I would do neither. If the offer came verbally, I'd laugh in the person's face and walk away. If it came in writing, I'd shred it and never contact that company again.

But then again, I'm a software and database engineer, and any company that denied me a job in my field but wanted me to be their parking lot attendant is filled with stupid managers and not long for this economic world in the first place.

Isn't the whole point of a degree to get a job higher than minimum wage? Unless you're an art or music major there's no reason to put yourself on a downward slope. Keep applying and keep interviewing.

Not sure what the situation is, but I would have turned it down. I would have felt insulted, but wouldn't have said anything and would have been on my way.

I just wish a Vet with decent computer skills would walk in my door looking for a job. I can teach you to be a fence estimator. Teaching you the drive that comes with most soldiers is another matter.

I'd vote for the third (absent) choice: Open a discussion on the possibility and potential for ascending to positions of higher responsibility and compensation.

Look elsewhere, there is no point choosing to be insulted. Doing so does not improve your position. I likely would do neither, but I would ask the interviewer why they would be unable to utilize my skills, knowledge, experience, and qualifications in their organization. This information could be helpful in future interviews and applications.

Depends on how bad you need the job.

Depends on how desperate I am for a job.

If you have a JOB mentality and the pickings are slim, you may want to go for it. The alternative is to think outside the little box that society has so graciously created for us and create your own opportunity. You don't HAVE to settle, it's a choice.