This is open to interpretation as well. The raccoon says that the fox found a "huge" muffin and so the rabbit thinks, in its own opinion, what a "huge" muffin would look like. It's interesting when you think about it.
This makes me think of one of the inside jokes between me and my friends. We always mess on our one awesome friend, Shawn, and always exclaiming to people all about how he LOOOVVVVVEEEEESSSS muffins. He hates muffins with a burning passion. Lmao
There was this game we'd play sometimes in Boy Scouts. We all stand in a line, the first guy is given a single sentence, and whispers it to the next guy, and so on. Then the last guy repeats it...and nearly every time it turned out completely different from the original sentence!