I would prefer a paid internship but would also accept an unpaid internship. How do you answer the question asking whether you expect to be paid or not? I don't want to cut out the possibility of being paid but I don't want to not be considered for the internship if I say I want to be paid.
Simply answer something like:
While my preference would of course be for a paid internship, I would consider an unpaid one if it were offered. I would then have to manage my living expenses differently, but it's not an option I would completely exclude.
That way you can discuss the fact that money is good, but you're open to the idea.