Deals with it like a pro!
You see that at no point in the conversation does Pete lose his cool. He does not endeavor to challenge the officers. His entire focus is on outsmarting them. Perhaps not giving much thought to what it is all about and why the guy is carrying a camera in his hand, the police officers try to make him produce his ID. While Pete might be well aware of his rights and has enough knowledge of the law to know how this situation can be handled within the boundaries of the law, he refrains from imparting too much knowledge. Instead, he chooses to let the police speak and just use enough words to leave them dumbfounded.
This video would teach you that you should be confident when you find yourself in such situations. You need to be well aware of your rights and should not let anyone undermine you or intimidate you. Whenever you feel the conversation is getting uncomfortable, you can choose to end it and no one would be able to stop you.