This clearly means that a "real Indian" would say "sorry, I don't know," but Google would lie. (Actually it's closer to asking whether it is a lie to be too embarrassed to admit to ignorance.)
If it had meant that a "real Indian" lies about it, it would have had a comma after "know" or "does" at the end.
I see where you're coming from, but 'lying' implies maliciousness. Somebody making up directions in cultures where not knowing is shameful isn't malicious, it's wanting to not be embarrassed.
The trick is to make sure the person feels they won't be embarrassed if they don't know the answer.