When you offset something—say, the price of gas—you find a way to make up for it. My new car's ability to get fifty miles per gallon offset the rise in the price of gas. Offset functions as both a noun and a verb.
Okay, let's talk turkey. The Duke's lack of height was offset by his enormous wig. Even without shoes, he towered above most people, because his wig alone was five feet tall. The cost of the wig—close to $10,000—was easily offset by its quality: it was worth every cent. The inconvenience of the blizzard was offset by the joy of not having to go to school or work—or even get out of bed. The joy was what you might call an offset.