Islam, a religion of mercy, does not permit terrorism. Allah, the Exalted says in the Quran: “Allah does not forbid you from showing kindness and dealing justly with those who have not fought you about religion and have not driven you out of your homes. Allah loves just dealers. (Quran, 60:8).
"Jihad" means struggling or striving. Jihad primarily refers to the inner struggle of being a person of virtue and submission to God in all aspects of life. Jihad is not holy war as it is popularly propagated in the media. The Prophet Muhammad (PBUH) said that the greatest jihad is to struggle with the insidious suggestions of one’s own soul.
“And why should ye not fight in the cause of God and of those who, being weak, are ill-treated (and oppressed)? Men, women, and children, whose cry is: “Our Lord! Rescue us from this town, whose people are oppressors; and raise for us from thee one who will protect; and raise for us from thee one who will help!” (Qur’an 4:75)
"If they seek peace, then seek you peace and trust in God for He is the Hearer, the Knower." (Quran 8:61) "and let not the hatred of others make you avoid justice. Be just: that is next to piety; and fear Allah, for Allah is well-acquainted with all that you do." ( Quran 5:8)