People can be utter buffoons. A majority of people are frequently very rude, this is just a fact of life. It is the responsibility of the noble to rise above such petty trivialities and be the bigger person. However, there's a difference between being tolerant or understanding of a rude person, and allowing yourself to be abused. It takes a level head and maturity to distinguish between the two.
No, you shouldn't always put up with a rude person, but that doesn't mean that it isn't an option. Look at how the question is structured, is it asking your opinion on whether you should or not? No, it isn't. It's asking you if it is an option, and of course it is.
If someone is being rude, you should tell them to stop. Personally, I would be really mad, but not rude right back. If you could, congratulations! You are doing nothing to help this person learn respect. You must tell the person what they are doing, and that they should stop!