Again, the question is not “Do you feel Hispanic”, or “Do you feel like you’ll improve our diversity”, or any question that asks the student about how that person feels.
The question is … about where the student’s family was born.
I would even ask… is it honest to respond ‘no’ in this case?
Would a ‘no’ response be dishonest, knowing how to correctly answer the question?
Would it be… fraudulent?