what would you do in this?

here's the first few moves of a recent game, where i was wondering excactly what would you do as white in the next move, capture the ungaurded pawn, or continue developing?

i chose to continue developing with 3. Bc4

cool. if you captured the pawn, yoiu wouldnt have been captureed

no, but i would have lost tempo, for both the capture and his (more than likely)  chasing of the NIght with something along the lines of 4... D6

I would have developed my other knight. Capturing leads to having to move your knight again after an attack by the black pawn.

I would still take the pawn. If he harasses you with, say, P-Q3 you simply retreat to the same square and advance your Queen's pawn to Q4 whenever you have the chance. You then have control of the centre, he's certainly a move ahead in development, but you now have  two centre pawns to his one.