U can only settle for settlement sake. 376 cases have to be tried to the last in court. Only the victim , witnesses can say what they want to say. Law won't allow you to compromise. So take ur lawyer into complete confidence and act according to his directions. Sometimes court may take action against the victim for giving false report. So be careful.
Section 376 is not a compoundable offence. The only option is to approach the High Court is writ jurisdiction seeking quashing on the ground of settlement between the parties. However, in light of the Gian Singh judgment, the High Court may not entertain the same and you would have to get the case quashed from the Supreme Court itself.