I guess "A" would most fit the bill, "Turn him down, but still take the compliment," but it depends on what you mean by "hits on you".
If it's just "cruising", that's one thing. When I was younger, it would totally weird me out, didn't know how to handle it, but now it's okay, in fact I'm kind of flattered - even turned on - by it.
(Okay, I'm a total narcissist. I enjoy being good-looking. Also, according to one guy, a real prick tease!
)
But, if it's persistent, it can really be annoying, harassing. I've had a few "stalkers" - guys who wouldn't take "no" for an answer - and sometimes I'd end up having to drop all the "niceness" and telling them to take a hike.
As for "B", I see no reason to be ashamed. It's really a compliment, someone finds you attractive. If you mean that you're afraid someone will think you're gay because someone's hitting on you, I could care less. I'm confident in who I am, and, besides, what's there to be ashamed of being gay?