Yeah, sure. You can only choose the 'resist arrest' option with the first guard. Any subsequent arrent attempt will require you to either pay the fine or do the time. I did the time in prison, which cost me a little bit in terms of skills, but afterwards they give you back everything you had before the arrest - including the armor you salvaged. You might also want to pick a more secretive area to do the stunt, like the horse stall on the west side of town (that's where I did it) - the more crowded the area, the more NPCs will turn against you.
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