50NL - KT flops top two deepstacked

[wikemang]

I have villain at 13.5/4.6/3.4 over 259 hands.

Full Tilt No-Limit Hold'em, $0.50 BB (9 handed) Full Tilt Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

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

MP2 ($13.65)
MP3 ($47.75)
CO ($41.25)
Button ($35.50)
<font color="#C00000">Hero ($95.40)</font>
<font color="#C00000">BB ($104.30)</font>
UTG ($49.35)
UTG+1 ($55.45)
MP1 ($29.60)

Preflop: Hero is SB with T[img]/images/graemlins/heart.gif[/img], K[img]/images/graemlins/heart.gif[/img].
<font color="#666666">5 folds</font>, CO checks, <font color="#666666">1 fold</font>, Hero completes, BB checks.

Flop: ($1.50) 8[img]/images/graemlins/spade.gif[/img], K[img]/images/graemlins/club.gif[/img], T[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">Hero bets $1.75</font>, <font color="#CC3333">BB raises to $5</font>, CO folds, Hero calls $3.25.

Turn: ($11.50) 9[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">BB bets $7.5</font>, Hero calls $7.50.

River: ($26.50) 8[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">BB bets $10</font>, Hero calls $10.

My main question is on the flop. Should I be 3betting here? If so, to how much? Is folding an option? As played, what do you think? Personally, I'm not happy with my line, but at the time I was totally lost. After much thought, I'm still lost. Thanks in advance for your help.