His/her answer is a kinda template that you shouldnot take it serious.
Graduate students covers both master and PhD
If you are exceptionally bright, you will be accepted for master degree!
I have to mention that some universities just put such things in their webpages to tell others oh yes we are such a great university, and of course a good reason for rejecting applicants
It is up to you to spend more time for him/her
You can send an email and say thanks for his/her reply.
Good Luck
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