Josh imagines Sydney Mills up against him and leaning in for a kiss. He can't believe it. Not only is she a year ahead of him, but she is one of the hottest girls in school—and as of right now, she probably doesn't know he exists.
Poor Emma. Josh totally has the better end of the deal here.
Emma teases him and ruffles his hair, and Josh walks away quickly. He doesn't feel comfortable with this sort of interaction with her, especially about what happened between them.
Emma continues to tease him about his future wife, who he apparently vacations with in Hawaii. Then she runs off to class.