The amount you are entitled to is covered by the Montreal Convention. I believe the limit is 1,000 SDR.. which you can convert to dollars via the IMF website. The link to convert SDR's to your home currency is here...
http://coinmill.com/SDR_calculator.html#SDR=1000
The burden is on you to prove that the contents were worth more than $100, upto a maximum of 1,000 SDR, which I think is about $1,500 but you need to check this.
Refuse the offer and demand the full SDR, but back it up with evidence (receipts or credit card statements showing the value of the contents).