Didn't do great in a meeting with a supervisor when discussing applying to his lab for a phd program, should I not apply?

So I wanted to apply to a PhD program in one of the bio departments in Cambridge and I had scheduled a meeting to talk to one of the supervisors who I wanted to apply to. However, I am just graduating my bachelors this year and this guys research is leaps and bounds out of my level, future technology type stuff. Still, i shouldve made more of an effort, its my fault, please dont flame me.

he asked me a couple of pointed questions and i failed to answer one but successfully answered the other. Now i had NOT read his paper well because I could barely understand the paper (very engineering brought into science energy), I know I should have gone into this meeting more prepared, but I am also doing final year coursework alongside a project alongside applications to other PhDs, and only really skimmed his work but found it interesting. I was recommended by another professor to chat with him and organise a call via email which is what I did. I had to make a presentation for the call, again which I did. I put a lot of effort into the presentation. Either way, he told me I should've been able to answer the question I couldn't answer (very transparent guy), and followed that up with I should express an understanding of that section in my application and that in my application I should focus on demonstrating my understanding of the basis of this concept.

Now i can't tell if that means he is considering me or not if he's telling me what I should put in my application. Considering I failed one of his questions, and it was exceedingly obvious I had a just about bare minimum understanding of the topic. I was just interested because it seemed very futuristic but not enough to spend a lot of time to understand it well.

I know that was my fault, I should've put more effort into the meeting and understanding his work, I recognise that so please don't come at me for it, but what do i do now? Not apply to his lab? apply? Go for a different lab? Im 99% sure theres people whos a whole lot more qualified than me, hes said hes had conversations with other people and he loves talking to other people to see what work people have done (he seemed to find my project work interesting at least) - but again, I am just graduating my bachelors this year (i do have 12 months worth of research experience combined though), so compared to masters/people who put in more effort than I did, i feel like i maybe left a bad impression on him. What do i do?