Originally Posted by BellaBoo
Now she probably thinks you were telling her very politely you don't want it so don't be surprised if she gives it to someone else.
It sounds to me like she wants to give it to someone who will REALLY use it. It was gracious of her to offer it to you, so call her back and tell her thank you, and accept it.
If it was vice-versa and you offered her something you really wanted her to have -- wouldn't it feel great if she accepted the gift?