Shoot grenade launcher at terrorist.
You reload another shell into the launcher annnd... kaboom.
He blows up into a pile of BOOMUR SHEET and some other gory parts.
His pistol was destroyed, however, it seems you found 3 grenades.
At first you thought they were live, but it doesn't seem like he was Japanese in any way.
So, now that you have the fire extinguisher, you put out the flames and get the medkits.
Nao wat.
Your teammates are wounded by the way, you might want to use some PEELZ and medkits for them...