Don't panic — being flustered will only make things worse.
Tips
grammar
不知所措 follows the classical pattern 不 + verb + 所 + verb: 'not knowing where to place (oneself/one's hands).' Similar structures: 不知所云 (not knowing what is being said), 无所适从 (not knowing whom to follow).
history
From classical Chinese. 措 originally meant 'to place' or 'to arrange.' The idiom literally means 'not knowing where to place one's hands and feet' — so confused that one doesn't know how to act.