So you are asking should you lie? Because in my view there is only one answer to that question that is the truth, and the other is a lie. Some people dont see it the same way, but I see it as in everything you do, tell the truth and explain your side of the story. That is better than lying and just saying no hoping that it will just go away. If I was hiring I would prefer the acknowledgment of the event and explanation, rather than a lie saying it didn't happen.
But to each his own.