Upvote:1
Long story short - never lie on an application, the ramifications are far worse for you and you'll never get a chance to appeal if caught out (well, you might but they'll already be looking for a reason to deny you).
IF you feel it might be not-quite-sorta accurate, or you want to provide an explanation, write that you have, then put a * next to it, and attach a letter at the end explaining it truthfully and what happened. Your goal is to answer any lingering doubts they may have about you, so try to cover everything.