I agree, go with the truth. It may have consequences, but it's better to be honest. What happens from there is partly up to you, partly out of your control, but a basis of honesty is the right way to go about it.
As for the meeting - give it a go! What's the worst that could happen? You might even enjoy it! There may be some irrational fears going on there somewhere - give it a try and see what happens. If you don't like that particular meeting you could always try a different one.
