why did this boy that i like told me his friend likes me but he doesn't know me and i don't know him and his friend also deny's it AND the boy who told me that asked me "who would you rather date?"

I can tell you this guy is playing little kid games here trying to use others to find out exactly how you feel about him. What you tell him is up to you but personally I wouldn't get caught up in this kind of game with a little boy who needs to grow up. Just tell him you definitely don't need a little boy in your life here and leave it at that.  Move on  and good luck