[X] Yes but fire the leader: The Sergeant is the biggest problem in the squad, with the rest being pretty browbeaten. See if you can find a replacement for him, and keep the rest of the squad.
[X] Take the Abandoned Compound (5gc per month, for five months): Once the home of an aspiring merchant family, it was destroyed in the huge fire that devastated the entire east side of the island. Now it's mostly abandoned but offers a charming servants' cottage and plenty of space for expansion.
[X] Keep the Assialint: You will be able to interrogate them later, but there is some chance of escape. Still, this is your best chance at getting what you need out of them