Wagh crap, I voted for no, I meant to vote for the middle one.
I had no idea 'Brit' was considered racist. I'm English, being called British instead of English annoys me, but I've never been offended by 'Brit'. Never knew Aussie was thought to be racist either. And I have a friend whose family is from Pakistan, she even calls herself a Paki. Although I did know that one's considered racist.
But then you have my sister, who throws out 'Paki' like free candy, she calls dirty parts of towns 'Paki streets', constantly, constantly raves on about foreign people and how they annoy her, and yeah, you get the idea, she's pretty damn narrow-minded.
So in short, is does depend on how you mean it.