I think a fold is ok. Becomes more of a call the later position your raise is since it is more likely he'd start defending SCs and soooted aces and playing them in this way. He definitely can turn up with sets, and if you think he plays straightforward it's unlikely he'd turn TT or something into a bluff here. I think his betsize makes sense with any value hand, it's not like hero has shown any great strength so betting any more with a hand like AQ would just be overkill.