Well, yes, they decided to go with a candidate with more experience. If you do reply, respond with a sincere thank you for the opportunity to meet with them about the position and that you respect their decision. However, add in that you hope you can be considered as a viable candidate in the future, once you have more experience to offer. Wording the response like that shows them that you are gracious, yet have ambitions to join the company in the future when you have more to offer. Hope that helped.