If there is no other option to save them, yes on the principle, their lives are more important than money and I disagree with the idea of not doing everything to save my compatriots. After it depends on what exactly they are asking for, 200M is way too much.
Paying the money would only guarantee that they take more hostages. It's a hard lesson that some countries desperately need to learn.
It all depends on the value you put on the lives of your compatriots... Israel sometimes exchanges one Israeli for hundreds of Palestinians.