I honestly think the multiple references to your fiance is what sunk this application. Anyway - what's done is done.
You'll need to declare this refused application in any future applications to Canada (and likely elsewhere). Failure to declare this refusal in a future application to Canada will result in a refused application and may result in a misrepresentation finding (which you want to avoid since it's a five year ban from Canada). A previous refusal doesn't mean you'll be refused subsequently. If you can overcome the refusals reasons - approval is entirely possible and we've seen lots of cases here where this has happened and individuals have been approved after refusals. If you want to hear these kinds of stories, your best bet is to read through historical threads in this section of the forum.
Forgot to address the first part, which is really interesting, do you mean to say that when I apply for my next Canadian visa I'll have to declare that I was refused in the past? and if I didn't it might result to misinterpretation and ban?