I guess everything that needs to be said is shown in the thumbnail of the video. Good to know that when I checked off the "hispanic" box when it comes to race I wasn't really lying.
I've always questioned whether Spain really counts as hispanic since it doesn't really make sense that Spanish people would check a different box than Portuguese or Italians. People used to (and some still do) call every Spanish speaking person Spanish in the US. I've always found that mildly annoying.
Argentines are hispanic/latino even if their ancestry is 100% European, so those scholarship people were wrong... and discriminatory.
I guess if the US or other countries really cared about a person's ethnic makeup, they would ask more straightforwardly if you have any Native American (either Northern or Southern) ancestry.
This "what are you?" question is becoming increasingly outdated and hard to answer since there's more mixing and moving of populations.