Q: If Pacifist must play an N when Loser calls upset, does he get compensation?
This one is actually correct. Pacifist played an N, used his power to win, loses because Loser had done his thing, and gets compensation because he played an N and lost.
But yeah, there's some pretty bad stuff in the FAQ. I could have whipped up something better in an hour or two, and I'm sure a lot of other long-time or technical players could as well.
Don't feel too bad, Zomber ... this one gave me whiplash, too. I originally had the same reaction as you in my FAQ review and Toomai had to slap some sense into me. (I guess my only defense is that I was worn out from all the research and the FAQ is so gnarly I just started expecting every entry to be wrong!)
For the record, however, that FAQ entry is still incomplete: the one-word answer is insufficient since the question is incomplete.
Part of the reason the FAQ is so crappy is that many of the questions are crappy. A good FAQ writer always rewrites the questions to eliminate potential confusion and misinterpretations. If they wanted to get away with a one-word answer (which the FAQ does a lot), then this question really should have been, "If Loser declares an upset and reveals an attack card, but Pacifist is forced to reveal a negotiate card, Pacifist wins and therefore loses because of the upset. Does he get compensation?"
Not only would the entry have been leak-proof, but folks like us wouldn't have gotten confused.