1) I'm guessing that's fine but don't quote me on it. I think they mean more of the game itself needs to be just created for it, reusing art and such is a normal thing to do.
2) Yea I can see that not being an easy word to get. Some other words would be lies, misinforming, betrayal, trickery. So in the simplest sense, something that is misleading or just a lie. A game example would be like Portal, how Glados is a character who lies and tries to trick you as the player. It is an interesting topic for a game that isn't used a lot. So try and think of a way that you can be "tricky" to the player or make the gameplay where you have to "trick" something else or something looks a certain way but then isn't really that.
Hopefully that helps!