If you say "yes" then you agree there is a line somewhere. If that's the case then we should discuss where the line should be and why it should be there instead of saying "stop [worrying] about being politically correct".
If you say "no" then your argument is that no words are too offensive to use or we shouldn't care if people are offended by any term at all. Which is an argument that you're free to have but if that's what's happening then make that argument and advocate for why it would be ok to use the n-word as a terminology as well.
I think that in these discussions it's easy to get sidetracked because people are actually arguing different points without realizing it. You're talking about the same scenario but you're arguing from different premises which means there's no hope of coming to a shared understanding because you're not actually talking about what you disagree on.