I am not entirely sure what the problem was, but it got solved by manually specifying the compile commands.
# Compiler
cc = gcc
#Options for Development
CFLAGS = `pkg-config --cflags gtk+-2.0`
#Libraries
LIBS = `pkg-config --libs gtk+-2.0`
all: pss
pss : main.o interface.o
$(cc) -o pss main.o interface.o $(LIBS)
# $(cc) $(LIBS) -o pss main.o interface.o
# This line fails to link whereas the line above works.
main.o : main.c interface.h
$(cc) $(CFLAGS) -c main.c interface.c
interface.o : interface.c
$(cc) $(CFLAGS) -c interface.c