Yes, this is confirmed in this article...a link to this article was provided in an earlier posting by marsavian. The last couple of sentence confirms that Intel runs emulation software on Medfield to run ARM apps and that Medfield seemingly handles the extra processing needed for running such emulation software:
ARM Incompatibility with Legacy X86 Applications
By definition, programs that have already been developed for Intel and AMD X86 PC platforms will not run on any ARM SOC (System on a Chip) from Nvidia, Qualcomm, Texas Instruments, or any other ARM licensee. The reverse is true too; apps written for ARM will not run natively on X86 processors. Software programmers are ingenious at emulation, but nothing has been announced about ARM emulating X86 nor do I think we will see it anytime soon. This is primarily because emulation eats up significant hardware resources which no current ARM-based SOC has to spare. Intel, on the other hand, is emulating ARM on their X86 Medfield platform as they showed at CES 2012. Obviously Intel believes they do have sufficient resources to do this.