You do your best to kill as few people outside the terrorists as possible, accepting that because any military is not all-powerful and the terrorists are incent

You do your best to kill as few people outside the terrorists as possible, accepting that because any military is not all-powerful and the terrorists are incentivized to and do put civilians in the line of fire, you will not get it 100% right and civilians will be killed unintentionally. It's the least bad of a set of terrible options.