Cancellation on a mutual basis

[Sharon5]

Hi,

My guest would like to cancel the booking, because we both had a misunderstanding about the property at hand.

Would like to ask:

1) What are the penalties to me?

https://www.airbnb.com/help/article/990/how-do-the-cancellation-penalties-work

Referring to the website above, this guest uses instant book to book my unit.

Will an automated review will be posted to my listing's profile? indicating that i have canceled one of my reservations

2) Any penalties to my guest?

3) Will my guest be able to get back the full refund

4) We both want to mutually cancel the reservation in a nice and peaceful manner. Please advise the best possible method to solve this problem.

i know there are plenty of articles being written on this topic.

But, from what i read, i get confused because it is contradicting 

[Carrie1]

If the guest cancels, the guest does not get their Airbnb fees refunded, and, depending on your cancellation policies, they may get all, some, or none of their money refunded. You can always choose to refund the guest the remainder of the amount you would have gotten, but guest would still not get the Airbnb fees back.

If you cancel, Airbnb automatically blocks those dates from your calendar & also imposes other penalties that will/could result in you getting fewer bookings.

The best option may be for the guest to call Airbnb directly to explain the situation. Sometimes, Airbnb will cancel the reservation & refund the guest without penalizing anyone.