Can I put an industrial project as part of the employment history on an online application?

I do not have any co-op or internship experience. However, I "worked" with Exide on a project for one semester. This project was considered my Design II class. I was not paid for this project and most of my work was done on campus, there was very few plant visits. I don't want the employer to think that I am lying to them. I feel like they might not read my cover letter to know that I have some industry experience. Also, if I were to add it on my employment history, could I put my job title as "Process Engineer (Student Project)" as a disclaimer?

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