NL25 KK analyze this hand

[AmonRaa]

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

saw flop|<font color="#C00000">saw showdown</font>

UTG+1 ($28.90)
<font color="#C00000">Hero ($25.45)</font>
<font color="#C00000">MP2 ($33.15)</font>
<font color="#C00000">MP3 ($19.55)</font>
CO ($24.65)
Button ($19.45)
SB ($25.20)
BB ($9.10)
UTG ($6.05)

Preflop: Hero is MP1 with K[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/spade.gif[/img].
<font color="#666666">2 folds</font>, <font color="#CC3333">Hero raises to $0.95</font>, <font color="#CC3333">MP2 raises to $1.65</font>, MP3 calls $1.65, <font color="#666666">4 folds</font>, Hero calls $0.70.

If flat calling a raise was wrong i'd like your reason why.
I only called it because rerasing is not for value since worse hands will fold or worse - push me out. Same goes for info value. Villain might think QQ is good to felt it and i have to fold to 5 bet. So I gain no value and no info.
If my thinking is flawed explain to me like a 5 year old.

Flop: ($5.30) 2[img]/images/graemlins/heart.gif[/img], 7[img]/images/graemlins/diamond.gif[/img], 7[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(3 players)</font>
Hero checks, <font color="#CC3333">MP2 bets $5.3</font>, MP3 calls $5.30, <font color="#CC3333">Hero goes arrr in?