How do you play AK here?

[ninconvert]

Hey guys, I usually play at $10 buy in but was taking a couple of shots at $25 to expand my comfort zone however not too comfortable yet at this limit. How should you play AK to the big reraise preflop, is it an obvious call as I suspect or does it get you in trouble? on the flop should I bet out or not seeing as I put him on a high pair? is the fold wrong the bet seemed weak...

Thanks guys sorry if this is really obvious

Full Tilt No-Limit Hold'em, $0.25 BB (9 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

UTG ($9.75)
Hero ($34.85)
MP1 ($6.65)
MP2 ($8.90)
MP3 ($10.90)
CO ($30)
Button ($33.85)
SB ($20.65)
BB ($51.95)

Preflop: Hero is UTG+1 with A[img]/images/graemlins/heart.gif[/img], K[img]/images/graemlins/diamond.gif[/img].
<font color="#666666">1 fold</font>, <font color="#CC3333">Hero raises to $0.85</font>, <font color="#666666">1 fold</font>, MP2 calls $0.85, <font color="#666666">1 fold</font>, <font color="#CC3333">CO raises to $3.75</font>, <font color="#666666">3 folds</font>, Hero calls $2.90, MP2 folds.

Flop: ($8.70) T[img]/images/graemlins/heart.gif[/img], 9[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">CO bets $2.5</font>, Hero folds.

Final Pot: $11.20