How does the male wolf indicate that he is capable of higher level thinking?

In Chapter Eight, after Farley marks his territory, the wolf approaches, sits at the boundary, and then stares at Farley until he becomes quite uncomfortable. Farley wonders if he’s crossed a line, but eventually, the wolf gets up and carefully marks each of Farley’s claims with his own before trotting back to the den. He is acknowledging Farley's boundary, and yet, he knows enough to show Farley that is can be erased if he so chooses.