Louise Watkin pulled GB from fourth to second in her final 50m but could not quite usurp Australia and had to settle for silver.
Stephanie Millward said that second is nothing to be ashamed of, but admitted that they wanted the gold.
She said: "I'm quite happy. Second is nothing to be upset about really. We did want the gold so we're all going to cry later. The gold was within our reach really."
However, Claire Cashmore labelled coming so close as "heart destroying", but insisted that the team could have done no more.
"It's fantastic," Cashmore said. "I feel privileged to be part of a great team. To be so close, to be points of a second off, it is heart destroying but we couldn't have done any more."
Jacqueline Freney ultimately took Australia home for gold.