What can “passt schon” mean?

recycling

来德国很多年，应付念书其实不需要德语地道成什么样子，我也是个懒惰的人， 平时和德国人的交流也少，所以很多很日常的交流词汇我反而知道很少。刚刚网上看到的一个，觉得还挺有用。转贴如下：

I've heard the phrase "passt schon" used to mean:
    Never mind: „Ich denke... nee, passt schon.“
    No problem: „Entschuldigung!“ „Passt schon.“
    OK: „Wie geht's?“ „Passt schon.“
What can it mean in Bavaria? Is there a good English translation?
       

I don't think you could translate it with an English word 1:1.
As you said yourself, it can have many meanings in German. In fact, you can say it in response to almost any question.
    Wie schwer ist diese Aufgabe? Passt schon!
    Hast du dich sehr verletzt? Passt schon!
    Das macht 48 Euro. Passt schon. (Keep the change)
    Lass mich das machen! Passt schon. (I have it under control / let me handle it)
Generally, it's used to make something less important/worse/interesting or to express that the other person shouldn't worry about something.
There are many translations for each of these situations, so I think you should translate it how it fits the situation.
"It's all right" may be the best for most situations, but certainly not for all of them. As this is very, very, very informal you should translate it as it best fits in the situation. There is definitely no "universal" translation for it!