Most Helpful Guy
There isn't really a right way to answer this. It's one of those blunt, awkward moments. I think these are the main points to consider.
1. He has probably wanted to say this for a while, but didn't know how to put it.
2. He doesn't want to hurt your feelings, but also wants to convey his message.
3. This isn't something major. It's not like he called you fat or ugly or anything.
4. It's not a matter of right or wrong. There isn't really a nice or sensitive way to put something like this.
If I were you, I would let this go. Not worth dwelling on. Go and get it waxed if you want.