It seems like you want to be with her because she’s here right now and you’d rather have someone than no one. You wouldn’t be hesitating otherwise. You effectively told her that, too.

If you don’t think you can commit and she’s looking for that, you should let her go.

Holy crap

If you feel comfortable doing so, you could ask for insight into why your application wasn’t considered. You can try to phrase it around making it a learning moment for you: Can you explain to me why my application wasn’t considered so that I can be better prepared the next time an opportunity arises? The person being asked the question will be less likely to see it was an attack and more of a humble question from a person who values their insight.