“Very sorry, sir. I didn’t mean to, er…”
The embarrassment was still reddening Jackson’s cheeks when he found the paper-knife at the bottom of the case.
“I think I’d better keep this though, if you don’t mind, that is, sir.”
Learn English – What does ‘That is’ mean here
meaning-in-context
Best Answer
That refers to the suggestion of keeping this; the sentence could be rewritten as
The reference to “sir” not minding comes as an afterthought after the suggestion. The person doesn't seem to be too sure of himself while speaking, and when he suggests keeping “this”, he immediately thinks of adding that his suggestion is subject to the approval of the person he's talking to. This construction is quite common: