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Exchange/Replacement how to

I have a buyer here who got the wrong item. So i clicked on ebay's suggestion 'replacement". So, the return is now open under replacement. He buyer is happy with the new item I offer. But here is my problem. I cannot find anywhere to send a refund or start a exchange. All I can do at this is point is respond to buyer or view the detail of the open request. Does anyone know how I even just do a simple refund now that it is open? I would prefer to the replacement. 

 

PS I looked into bypassing Ebay and just use Pay Pal for a refund. But PayPal will not let me do anything it has to be done in Ebay.

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