The interviewer is asking whether the interviewee prefers to cuddle or party. To cuddle someone means to lie or sit closely together (with your boyfriend, girlfriend etc) so that your bodies are touching, with arms around each other etc. You normally do this when you watch a movie or lie in bed together. Party means just that. Go out to a club or a party and dance, listen to music etc.

Seems like a joke? To cuddle means to comfort somebody here. Probably because the interviewee has failed this interview. While to party means just that: 'Congratulation, you have just passed this interview.' But certainly the interviewee has misunderstood the interviewer.

I don't know what the interview was about, but Simon's explanation is good and the answer suits it. When the weather is bad (e.g. in winter) the person prefers to stay at home and cuddle, when it's good he/she goes out to a party, or maybe vice versa)