As the question was "were you ever arrested" the answer should have been yes.
However since you have already done the application, not much you can change at this point.
however, since you were not convicted of a crime, let alone stood trial, you should not be prevented (due to this issue) from getting your CHL, unless the TXDPS decides you intentionally lied on the application, then I suppose they could deny you.
it would not be a bad idea, to contact the county clerk or DA's office where the offense originally occurred, and have them send you a letter stating there is no arrest record for you, or if there is an arrest record, what the outcome was on the case.
Thus if (potentially WHEN) TXDPS asks, you have the answer ready to send to them (and they will want a copy of the record from the court or DA.