I would'nt say anything women know generally if a mans interested ..dont make it akward for her and make yourself sad just carry on as friends, possibly go on some dates with other women, not only will it take your mind of her, you might actaully meet someone new who likes you ! also it might wake any dormant feelings your friend has for you if she sees other girls find you a catch, she might see you in a whole new light.
Discuss what type of love he was talking about and why he felt that way.
I'd thank him, remind him again I don't feel that way, and let him know that if it'd be easier for him I'd avoid him until he felt he could be around me without wanting to be with me.
I suggest getting wasted and getting a hooker, for obvious reasons..
there would be awkward silence would follow