please help with correct answer

Your subcontractor delivered building raw material 3 days late. To bring some degree of satisfaction, he reduced its cost by 5%. This offer is an example of?

Options:

A:  Compromise
B:  Collaborate
C:  Smoothing
D:  Forcing
 

I would say it's Compromise (A),

 

Because it's a lose-lose situation, he lost money, and you lost time,

Thank you