Not at all! 'Batty' means even a person who doesn't know the right answer can tell they're wrong. Even very bad people at Jeopardy¹ usually draw candidate answers from a more plausible set than is shown in Watson's logic/errors.

The best case I can make for Watson is that perhaps the alternatives shown are each actually the top option based on totally different understandings of the question. So in fact many other plausible answers are folded up just behind its right answer. The shown alternatives are meant to be: if the question means something else entirely.

¹ eg Wolf Blitzer: http://www.youtube.com/watch?v=DVC28oemocA