If my IPhone 3GS is not working,when I go speak to Apple will they exchange it for an IPhone 4 or will I just get another 3GS?

I am wondering this because today I went to an AT&T store since my IPhone 3GS is working not so well and I barely got it about four months ago,they said that I would have to go to an Apple store which I am going to do Sunday but my IPhone 3GS be exchanged by an IPhone 4 or the same model as right now?Also,if I don't get the IPhone 4 is there any chance I would be able to buy it from them,no higher than 100 dollars?

Replacements are same model, size, and color.  99.9999999% of the time there is no exception and the exception is always Apple's decision.  This has only ever happened when Apple does not have sufficient quantities of service units for replacement of a specific model.
Apple does not offer "upgrades" or exchanges during the warranty replacement part.  If you want a newer model, you must purchase it at full retail (or subsidized price from your carrier if you qualify).

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