They are not denying your right to fight it. The $125 is court fees that you will have to pay for appearing in court to fight it. Not really much of a case to fight in this one. You either have a valid license on you or you don't. I would pay the fine and move on rather than spend time going to court and ultimately paying more.
It's not a moving violation anyway so it's not going to go against your license or effect your insurance.
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