In this case, guns blazing definitely wouldn't be literal. They'd be exploding the political situation but Kid Q is just being sarcastic and means that entirely rhetorically. Things would only devolve into fighting if the Harrubians started being violent first. And since the characters inside the arena will be stopping Arcade and contacting everyone for rescue during all this anyway, the characters outside the arena will only have time for either creating a diplomatic incident or getting the Harrubians to sign the charter.

The reveal of the arena will cause everything to grind to a halt, so there won't be any time for a potential physical fight. But either diplomatic choice would definitely affect things for the future, each in a different way.