iPod Return iPod Nano for Cash

I just got a new unopened iPod Nano 16GB from a contest. I have the gift receipt. I have no use for this device so I want to return it.

I understand from the Sales and Refund Policy:

"In the case of items returned with a gift receipt, Apple will offer you an Apple Store Gift Card equal to the purchase price of the gift, including tax and any other fees."

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The Sales and Refund Policy also states:

"...we’ll exchange it or offer a refund based upon the original payment method. For returns to an Apple Retail Store for cash, cash equivalent, and check transactions over $250, Apple will mail a refund check to you within 10 business days."

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So I want to go to an Apple Store and return my iPod Nano for an Apple Store Gift Card (worth ~$149). Then I want to buy another item worth more money (for example an iPod touch 4th generation for $199) with cash + the gift card.

Here's the question:

Is the "original payment method" is considered cash?

In which case the store will refund me the price of the iPod Touch 4 generation in ~$199 cash (< $250 so not a check). (This is what I want to happen)

Is the "original payment method" is considered gift card?

In which case the store will refund me the price of the iPod Touch 4 generation with another Apple Store Gift Card (This time worth ~$199).

Or finally, is the "original payment method" is considered cash and gift card?

In which case the store will refund me the price of the iPod Touch 4 generation with another Apple Store Gift Card worth the same price as before (~$149) and cash worth the same as before.

I gave in and called them with my confusing question. You are right they will give me back cash plus the original gift card. The only way to get a refund is if they sent the money back to the contest person's method of purchase.

Maybe I can return it at a different reseller, I'll have to start researching policies.