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If you'll hate the role, then you probably won't give it your all, which will also make your SM look bad, so it's better to choose the option where you actually enjoy your work.
Just say you're not a good fit, but before you say that find someone who genuinely would be a better fit and show your SM why that person would be able to add more value than you would be. If that's the case, everything should be fine
Yes you can say no just be polite and timely