I wouldn't be fighting someone capable of honesty
What if the fighting started accidentality? What if the state that is actually a pretty decent liberal democracy where there is a large amount of political freedom. Would you still be part of the revolt? and would you take the deal if, at least for the time being, the current government is sympathetic to your cause?
As for guarantees, what could they offer that would be enough? Lets say the deal gives you the city and surrounding area, opens up trade between you, and allows for free movement of people. There would be a guarded border on the state side but no troops or cops would be allowed inside. Or maybe a DMZ?
Also fooling them with a silly counter-offer is a really good idea, but a part of me thinks that it's kinda cruel to ridicule their genuine offer.