Gracious means "kind, courteous, and compassionate," like your gracious reply to a rude question like, "So, did you ever learn to hit a softball?"
Gracious descends from the Latin word for good will. A gracious person wants everyone to be comfortable: a gracious host leaves extra blankets and some books on a variety of subjects out for overnight guests to enjoy. Even at a difficult moment, a gracious person remains thoughtful and kind, like the gracious way you treat a waiter who spills a glass of juice on your lap.