The offspring distribution has generating function $$P(s) = \frac18 + \frac38 s + \frac38 s^2 + \frac18 s^3 = \frac18(1+s)^3, $$ and mean $$\mu = P'(1) = \frac32>1, $$ so if the initial generation had one individual, the probability of extinction is the unique solution to $P(\pi)=\pi$ with $0<\pi<1$, in which case $\pi=2-\sqrt3$. Now, since the initial generation has two individuals, we can treat these as two separate processes, and extinction occurs exactly when both processes expire. Hence the extinction probability is $$(2-\sqrt 3)^2=7-4\sqrt3\approx 0.0718. $$