How does Peewee handle the child incident

On a rainy day, ARVN soldiers bring a Vietnamese woman and her two children to HQ. The woman appears to have no helpful information, so they release her. Peewee tries to make a doll out of grass for the woman's children. Before he can gift the doll, the woman hands one of her children to a GI from Charlie Company and the child explodes, killing the soldier. After the explosion the soldiers gun down the mother and her remaining child. Pee Wee is devastated and walks away.