@Rikudou:
Nice so his interpretation is that Naruto is smarter than usual. So she did confess that she loves him but Naruto knew that he wasn't first in her heart. And that's why he told her that she was lying to herself.
Well it seems that the critic acknowledges some feelings between them but Sasuke is making things complicated.
Sasuke is the complicated one, so its just natural he makes everything complicated for Naruto, Sakura, Kakashi, the leaf, Orochimaru, Itachi, the Akakstui, Bee, the cloud village, the shinobi world, even Obito. So because he is complicated he makes just so many issues for so many people.
Naruto knows her very well too, but if anything is known, Naruto knew Sakura had a motive despite her attempts to try and free him, to give him happiness at the cost of her own. He questioned her from the exact start and asked her if it was so joke and she continued. But in the second half of the confession Sakura was perfectly honest about why she didn't want Naruto doing it before Naruto stated he was after Sasuke for other reasons, mainly because he understood revenge.
Also 2 things which was never mentioned that many overlook:
-Naruto never condinuted Sakura once she asked "if you don't like me then just say it", instead of answering this he just continues saying it makes no sense, out of all times and places, Naruto was not stupid he knew there was a truth.
-Naruto is unaware of Sakura's knowledge of him loving her. This can always come back, the development between them is not finished, as long as team 7 has a story there is still development to be had between Naruto and Sakura. Sakura is still able to get that gradual shift or realization, that mature transition to overcome Sasuke.