The word fudge has two main meanings:

1. A soft, sweet candy made by cooking sugar, butter, and milk together until thick and creamy. Chocolate fudge is probably the most popular kind, but you can also make vanilla fudge, peanut butter fudge, or dozens of other flavors. Making fudge requires careful attention: heat it too long and it becomes grainy and hard; don't heat it enough and it stays runny. When it works, you get smooth, melt-in-your-mouth squares of concentrated sweetness.
2. To avoid telling the complete truth or to present facts in a misleading way without outright lying. If someone asks whether you finished your homework and you fudge your answer by saying “I worked on it for a while,” you're being vague on purpose, skirting around the real question. Politicians sometimes fudge the numbers in their reports, making things look better than they actually are. Students might fudge the data in a science experiment to get results closer to what they expected.

When you fudge the truth, you're not being honest, but you're not exactly lying either. You're staying in that uncomfortable middle ground where you twist things just enough to avoid the full truth.