The candidate's experience is essential during any recruitment process, and this is especially true for candidates that aren't ultimately offered the job. You may end up with a great silver medalist candidate that would be next in line for a job upon another opening, and letting them down the right way would be essential for future success with them. Conversely, there will come a time in your career when you have a candidate who applies but isn't the right candidate for your organization, and a hard conversation needs to be had. No matter how you answer this question, make it clear to your interviewer that you take the proper dispositioning of candidates seriously in your work.