Fetching details from the dictionary...

pitiful; unfortunate; poor; miserable; wretched
unpardonable; regrettable
彼女の状況は本当に気の毒に思う。
I feel sorry for her situation.
気の毒ですがお断りせざるを得ません。
I'm sorry but I have to decline.
そんなことになって気の毒だね。
I'm sorry that happened to you.