
dafür
in favor
Expresses agreement with or support for something; the opposite of 'dagegen' (against it).
Sollen wir ins Kino gehen? Ich bin dafür.
Should we go to the movies? I'm in favor.
for it / in favor
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in favor
Expresses agreement with or support for something; the opposite of 'dagegen' (against it).
Sollen wir ins Kino gehen? Ich bin dafür.
Should we go to the movies? I'm in favor.

for that
Refers to a purpose or intended use.
Das ist ein spezielles Werkzeug. Wofür ist das? Dafür, um Schrauben zu lösen.
That is a special tool. What is it for? For loosening screws.

in return
As a replacement, return service, or compensation for something.
Ich helfe dir bei den Hausaufgaben, dafür gibst du mir ein Stück von deinem Kuchen.
I'll help you with your homework; in return, you give me a piece of your cake.

to blame for it
Indicates the reason or cause for something previously mentioned.
Er hat den Zug verpasst. Er kann aber nichts dafür, der Bus hatte Verspätung.
He missed the train. But he can't help it; the bus was late.

on the other hand
Introduces a balancing or contrasting positive aspect, often after a negative one.
Die Wohnung ist klein, aber dafür ist sie sehr zentral gelegen.
The apartment is small, but on the other hand, it is very centrally located.
'Dafür' (for it / in favor) is a pronominal adverb made up of 'da' and the preposition 'für'. It replaces 'für + thing/clause' and helps avoid repetition.
Ich interessiere mich für Politik. -> Ich interessiere mich dafür.
I am interested in politics. -> I am interested in it.
When 'dafür' (for it / in return / on the other hand) stands at the beginning of a main clause (position 1), the verb follows directly in position 2. This change in order is called inversion.
Ich habe viel gearbeitet. Dafür bin ich jetzt sehr müde.
I worked a lot. That's why I'm very tired now.
'Dafür' (for that) is the typical answer to the question 'Wofür?' (What for?). It explains the purpose or function of something.
Wofür brauchst du den Hammer? Dafür, um ein Bild aufzuhängen.
What do you need the hammer for? For hanging up a picture.
In this meaning, 'dafür' (in return) often connects two actions in a kind of 'deal'. The structure is often: 'Du tust X für mich, dafür tue ich Y für dich.' (You do X for me; in return, I do Y for you.)
Du hilfst mir beim Umzug, dafür lade ich dich zum Essen ein.
You help me move; in return, I'll invite you to dinner.
The expression 'nichts dafür können' (to not be able to help it / to not be to blame) is very common and means 'keine Schuld haben' (to have no fault). The person who is innocent is the subject of the sentence.
Ich kann nichts dafür, dass der Zug Verspätung hat.
I can't help it that the train is delayed.
'Dafür' (on the other hand) is often used after a negative statement to introduce a positive, balancing aspect. It frequently appears together with 'aber' (but).
Der Winter ist kalt, aber dafür kann man Ski fahren.
Winter is cold, but on the other hand, you can go skiing.
but
„Aber“ generally contrasts two qualities. „Dafür“ additionally shows that the positive aspect makes up for a disadvantage mentioned earlier. When this compensation is important, „dafür“ is a better fit; for a neutral contrast, „aber“ is sufficient.

Die Wohnung ist klein, dafür ist sie günstig.
The apartment is small, but at least it is affordable.
Die Wohnung ist klein, aber sie ist günstig.
The apartment is small, but it is affordable.