Applied for a new job after a challenging interview assignment

Today, I found myself in a tricky situation at my current job, which is a small startup with just the founder and five employees, including myself. The environment here is incredibly toxic; the founder micromanages every task and expects one person to handle the workload of five or six. The pay is very low, and I've faced personal comments from her whenever I don't meet her expectations. It's no wonder that several people have left this place in the past year, and just last week, another employee departed on bad terms due to similar issues. I've started applying for new jobs because I can't take this anymore. Recently, I had a promising interview with a company where a college senior of mine works. They seemed to like me, and now I've been given an assignment to complete, which I need to submit tomorrow. I feel confident about this opportunity and believe I might get hired. However, I encountered a problem today. I asked my current boss for a hard copy of my offer letter, thinking it would help me with my college finals. She agreed but then asked me if I was planning to leave the company soon. I'm stuck on how to respond. If I say yes, she could fire me since she already has a grudge against me and is actively hiring. But if I say no, I risk getting into trouble if I do get this new job. I'm unsure how to navigate this conversation without jeopardizing my current position.

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