Compromising your viewpoints and behavior is bad generally: it will in the end only lead to frustration and will be a hindrance in achieving one's goals.
There are many situations in which compromising the viewpoint is bad, and one of the is an interpersonal conflict: it might solve the problem in a short-term, but not in a long term.
The first choice is the right answer, that Polonius is sacrificing his daughter to trick Hamlet. This is when Polonius is convinced that Hamlet is lovesick over Ophelia, and when Hamlet calls him Jephthah, he fixates on the mention of his daughter, and neglects the context of Jephthah having sacrificed his daughter.
That event was historically correct.
