Guards are still alive (they’re well out of the blast radius), and with that you fail to deflect the knife, but you do manage to catch it in time to catch only you and Erendal. He’s as good as dead, but everyone else is safe. Using your previous dex and taking into account your fire resistance, you only take 8 points of fire damage.
Feel free to edit your post to reflect what just happened, as if you have seen fate and would go to defy it. It’s one of those moments.