This is a simple yes or no answer. I do not recommend lying. They can find out and if they catch you lying, then you lost your chance at this job. The reason this question is important is because someone who is currently employed appears to be a better candidate than someone who doesn't have a job. I do not believe it is true that an employed person is better qualified for any job, but it is one of those things that most people grew up with. If you are currently employed, then simply answer yes. You don't have to say anything else. If no, then you can say something to justify your reason for not having a job. But make sure it is a good reason. Otherwise, it might be better to simply answer, "No, I'm not currently employed."
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