I don't have my copy of the Passport book with me right now to investigate, but the text in the form you show it is wrong. Either there's an error in the book, or you've misquoted. (What's in the "..." sections though? I can imagine several things that could go there which would change the meaning, so perhaps
you should show a more complete quote, with page number.)
Anyway... no, InterruptedException is not the same thing as the interrupted flag. The JVM will use one of these two mechanisms to respond to an interrupt, but not both. If the interrupted thread is currently waiting or sleeping, then InterruptedException will be thrown,
otherwise the interrupted flag will be set and no exception thrown. In the latter case it's up to the programmer to check the interrupted flag when it's convenient and respond appropriately.
Note that if the thread was not waiting or sleeping at the time the interrupt occurred, but enters this state later (without previously clearing the interrupt flag), then InterruptException will be thrown the moment the sleep/wait is entered, and the interrupt flag cleared. So in this case it's like the InterruptException is simply delayed until the wait/sleep actually occurs.