I hope you return and ask what they wish ...how they wish you to respond. I don't believe in "white lies" either at all...but there is a way to tell truth without telling all of the story... and many, many professions use this skill to help others in their care to keep from damaging them further, and also to keep from telling someone more information than they need to know (they don't need to know.)

Perhaps talking with them about what they consider a "white lie" and what you consider might be good... semantics maybe?

TC

Try to get that job anyway... I mean, they've already said no, so you have nothing to lose by inquiring.