Hi @Paula918
You are not responsible for the opinion a guest has about your area, so please don't feel responsible for that and please don't offer a refund. Your place looks fabulous, only that is under your control and thats not their issue.
Let your guests cancel, your flexible cancelation policy should ensure you get paid for their reservation and them tying up your calendar (don't refund them) and yes, you'll get a bad review. You will get a bad review even if you do refund them anyway, so don't risk losing your payment as well !
Begging for a good review will encourage your guests to pressure further for a refund so try to remain impartial if you can and rely on your cancellation policy.