Hi - these are good questions. The good news is that it hardly matters.
We have had a number of applicants this year that I personally know who have rejected offers in the past (due to insufficient scholarship offer compared to other options they had) and then reapplied next year again. In their case they got into school A, B, and C. School A offered 50% scholarship, School B offered 25% and school C offered 100% scholarship. They declined Schools A and B as they never intended to apply there again but due to COVID ended up deferring school C for a year, which gave them another year to apply and try their luck at A and B (which were slightly higher ranked). They applied to the same A and B ... and funny enough these programs gave them an admit and almost the same scholarships (one of them was a bit less). Which proves that they either have short memories or no memories at all and I would not worry too much about letting them go since there is a good chance the language of your decline may not be reviewed.... but you can say something along these lines:
https://gmatclub.com/forum/how-do-you-p ... 44186.htmlThough my favorite has to be this one:
https://gmatclub.com/forum/when-to-brea ... ml#p304050