I did the red option ... but there weren't any repercussions? He actually told me that he liked it.
SPOILER + THEORY
So, from the end of the new road event you get hints that Geordi is trans. Speaking with him by resting at the brothel he confirm this.
My theory is that making fun of him makes Geordi like you less since it's a touchy subject, so I did'n make fun of him. I don't think the negative consequences have been implemented yet, but I suppose you receive less likes or can't have Geordi's hart (if implemented).
Another idea is that it reduces your brothel's reputation, since the encounters should be private, but it's not shown because the 200 gold gain message overlaps.