Reagan won the Republican party's designation by an overwhelming share, as he kept running with no serious Republican opposition. Having won 98% of the popular vote in the primary elections, it was clear his re-appointment crusade had across the board Republican support.
When he acknowledged the designation, Reagan talked about a reestablished feeling of idealism in America and the monetary enhancements since he took office in 1980.
To gain support for the revolutionaries. The story was exaggerated, but the American people bought it. It was used as a recruitment/propaganda campaign to turn as many people against the British occupation as possible.