Based on her history, with Hugo and otherwise, I expect a mix of confusion (on several levels), combined with perhaps her first taste of positive interaction since her time with Chaz (which could produce longing, which might lead to sadness, but might also clash with her confusion so she can't figure out if she wants Hugo to keep hugging her or not) and might (MIGHT) lead to her mistaking all that for genuine attraction to Hugo. It COULD lead to her acting on it, or not, and feeling awkward about it either way.
What might surprise you either way is what response Hugo elects upon seeing how it all affects her, no matter how it turns out.
See, there's a reason Hugo's alignment isn't evil!