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My friend offered me a hard drink but I 'denied' it.(a)refused,(b)declined, (c)rejected, (d)no important
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Please check the meanings of decline and deny. You'll be able to answer the question yourself.

http://www.englishgrammar.org/words-refuse-reject-decline-deny /

Tom
Comments  
Students: Are you brave enough to let our tutors analyse your pronunciation?
It would be:

"My friend offered me a hard drink but I declined."

"Refused" is close, but in this type of sentence pattern "refused" would have to be transitive:

"My friend offered me a hard drink but I refused it."
Refused