The Sheriff doesn't know precisely who has what family, around here. He seems to take this seriously enough at first, asking what Jefferson means by 'outside the town'. Is she missing? Is she just traveling?

But then the talk of 'Storybrooke' starts in, and his eyes go a little steely. He speaks in slow, careful tones from there. Tells Jefferson that he thinks he's having some sort of a panic incident, those are known to cause delusions. It's not Jeff's fault. He just needs to sit back and breathe and think about what he knows is real - like this town. Even just the chair he's sitting in.

He says he's not trained in helping people down from incidents like these, and he's going to call somebody who might better know how to help, if that's alright with Jefferson.