Michaeledward's post #30 seems to indicate it.
It isn't explicit, but it seems to read as if Mr. Bush accepted it, while expressing the notion that he hadn't earned it.
a couple of more quotes to add to it, taken from the online news article linked to in Post 30:
"Thomas said the Purple Heart he presented (past tense) the president has special meaning to him because the injury he suffered to earn it occurred just after a friend, Richard Peterson, lost his life attempting to save him."
"Carter later called Thomas to inform him that the president was very moved by the gesture and would like the couple to present it in person."
"Thomas took a copy of the original citation showing the origin of the actual medal and presented it as a companion piece with the citation he drew up for the president."
Sounds to me like Mr. Bush accepted it.
That's really a shame.