Absolutely - it's the weirdest thing ever that he says this - will he turn down the medal, or just the cash reward - someone who is looking to take your money says something like this.
It's a non-topic really, compensation for winning an award, it's bizarre he plays it up like this.
Let me put forth an alternate theory. Everyone is suggesting this is a scam for more money, which is undoubtedly the most likely explanation. However, I think an alternate explanation is that this may be a larger ploy to try to bait the real Satoshi out of hiding. Get him to say "No, that guy's a poser, it's really me." and while he's out, say "Hey man, what do you think about the blocksize?" This could explain Gavin's participation; pulling out all the stops to try to "save" bitcoin by getting founder-approval for a blocksize bump.
If there is an official narrative establishing a fake satoshi, the real satoshi would be over-joyed because this would basically ensure any further inquiry into his identity would be in the realm of conspiracy theory... leaving media unwilling to touch it.
Even if that were the case, why would it reveal Satoshi? Even if the real Satoshi felt the need to step in, he wouldn't need to reveal himself or open up future communications - just post an anonymous message signed with a known key that states "I am not Craig Wright".
The question is: why creating this hoax in the first place? If anything, the price of bitcoin has been negatively impacted by this.
http://www.coindesk.com/price/
What would it be one's motivation behind this?