Poor Rosencrantz. Does he really not understand or is he pretending not to understand?
If he doesn’t understand wouldn’t it have been wiser to ask exactly what Hamlet means? And if Hamlet had broken it down for him a bit, would he reconsider his position as resident toady for the King?
I mean, with Polonius gone, there’s no other obvious choice for company toady. Rosencrantz may be angling for the spying, sucking up position. And, of course, ends up dead. Osric steps in to the position later – and he lives, it would seem. One of the few to survive the play.