Does the verse: "And those who pardon people" include those who pardon an offense due to inability, or lack of power, or the separation of the two individuals for work, or due to distance? And what is the difference between 'afw (pardoning) and musamahah (forgiving)?

If the oppressed person's abandonment of their right and their inability to retaliate is the reason why the wrongdoer is not treated in kind, then this is not considered forgiveness, and the right of the oppressed person does not fall away. Forgiveness is voluntarily overlooking a sin while having the ability to retaliate. Forgiveness (afw) and pardon (musamaha) are close in meaning, referring to overlooking and waiving a right. A Muslim is encouraged to forgive and pardon, as it is closer to piety and a cause for honor, and "Allah does not increase a servant in anything due to forgiveness except honor." Forgiveness brings great reward from Allah, as He Almighty said: "So whoever pardons and makes amends, his reward is due from Allah."