NLT, I would be sorely tempted to just smile when he asks if you are dating. You really don't owe him a reply. He's actually hoping that you are so that it alleviates some of the guilt that he's carrying around about what he's doing.
Next time...just smile and walk away or change the subject.
Sit quietly, the answers will reveal themselves when you least expect them to. The past is gone, the present is a gift and you need to focus on today, allow the future to reveal itself when it is ready.