Tough call.
Without knowing what the answer would have been if you answered yes to the question, there is no way to tell.
It could have been we can upgrade both of you.
It could have been sorry, we only have one seat available and there are two of you, enjoy coach.
It could have been we only have one seat, would you mind splitting up?
Personally, if it's business or friend travel, they pretty much expect I'll be up front and they will be in the back. I don't like to work on the plane, so it's not usually an issue about working or not.
If it's just me and the wife, then we will probably not take it unless both of us can take it.
We often travel with a friend, and if they only have two seats available for upgrading, I'll let the ladies have it, the friend never gets to sit with us anyways unless it's an upgrade. If it's only one, then we'll probably let it go to the next person.