"Paragon" and "amnesty" are the words that fit the best in this sentence. By saying that the family whose house was robbed is considered a "paragon" of virtue, this means that they are considered an example of how virtuous people should be. This means that they demonstrated great moral character. This matches the meaning of the second part of the sentence, in which the family offered the robber "amnesty." This means that they decided not to take legal action against him.
