Will Not Pursue Level "" or below?

[Munchkin JK]

Just started playing Munchkin with my 9yo son this weekend and this was one of the questions we had. I was pretty sure this was the answer however, I have a follow-up question. If the monster won't pursue a level # or below, and I'm on the lower level, I don't have to fight BUT do I get the treasures AND move up a level or just get the treasures or none of the above? Thanks so much. We're loving Munchkin big time!