Question: In Sanhedrin 107b, there is censored material describing
R' Yehoshua ben Perachiah not interrupting his reading of the the
Shema to acknowledge Yeshu, who was asking his forgivness for a improper
remark. Although he lived generations earlier, was he holding like R' Meir
and his former student did not deserve Kavod or did he hold like neither
R' Meir nor R' Yehuda and there is a third opinion not brought down in
our gemara?
It is likely that Yeshu did not deserve Kavod. Therefore, Rebbi Yehoshua Ben Perachiah could certainly have held like Rebbi Meir. He could have held like Rebbi Yehudah, and even though Rebbi Yehudah maintains that one interrupts between paragraphs to respond to any person, it could be that Rebbi Yehoshua Ben Perachiah was in the middle of a paragraph (the Gemara in Sanhedrin does not specifically say that Rebbi Yehoshua Ben Perachiah was between paragraphs). Alternatively, even if Rebbi Yehoshua Ben Perachiah was between paragraphs, perhaps he felt that he should not interrupt at all for this particular person.
Furthermore, it says in the text of that censored Gemara that Rebbi Yehoshua Ben Perachiah intended to receive Yeshu that particular time, and he motioned with his hands for Yeshu to enter. Yeshu thought that his hand motions meant that he was telling Yeshu to go away. It could be, then, that Rebbi Yehoshua Ben Perachiah did interrupt his Shema in order to receive Yeshu (motioning with one's hands may constitute an interruption. See Shulchan Aruch OC 63:6, and Mishnah Berurah 63:18 who refers to the Halachos in OC 66 regarding interrupting to greet someone).