I understand your wishes. Forgive me for declining.
When a request has been understood and will not be granted.
Chinese original
阁下之意,吾已领会,恕难从命。
Why it works
Understanding is confirmed before the refusal, so it cannot be answered with “you misunderstood”. The classical phrasing adds distance without adding rudeness.
Original source unverified; not attributed to a historical author.