It does sound like that with little room for other interpretations, to my ear. But I haven't done that audition, so I do not know. Maybe someone with RCM experience can chime in?
When I auditioned for college in my country some nine years ago, there was both a sightreading exam where you had to read on the spot, and a "prepared sightreading" where you had half an hour or so to prepare a piece that was given to you, so it wouldn't surprise me if you get this task to prepare a piece in a short amount of time plus a sight-reading task on the day.