Absolutely not...and if it were me I'd be telling them what they can do with their steroids! I suspect it is more about covering their own butts than anything to do with you.
I was induced at 38 weeks and the question never even came up. I ended up with an emergency caesar but DS was screaming as they lifted him out - before I even saw him - so no breathing problems there.
This sounds really weird to me, if you're not happy with it you have every right to refuse it.