Our expert says:
Well, you could answer that even if it sounds odd, you don't think you have yet been in a serious conflict situation ( are you sure you know what they mean by a conflict situation ? ) but then answer how you hope you would handle it if it did arise. And as Philna says, they don't mean such a situation only in your work life. Have you truly NEVER had a conflict --- a strong disagreement -- with any friend, family member, etc ? Never had a problem with a co-worker not doing their work and leaving you with increased workload, never ( as Liza's xcellent comments suggest, too ) had a conflict in having to make a choice between two or more alternaives you found equally appealing ( or equally unpleasant ) ? If not, you have lived a chamed life.
There are no absolutely right answers to such interview questions --- they want to see whether you can recognize twhen such a problem situation arises, and whether you have a reasonable way o dealing with it when it does.
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