At a guess, Hope could freeze Orion's gun and knife hand with the create Ice or Air power, so he couldn't hurt the little girl. Wren could do this as well with his own create object power.
The power you are looking for is called 'Snare'. Create Object will not do the trick.
Shooting at Orion and hopefully blasting him across the room would be my preferred version. However, looking at your character sheet, it seems like you don't have Precise Shot (I'm surprised; every ranged attacker should have this. Take it the next chance you get), which means that you'd certainly have at least a -4 penalty shooting at him while he's got a human shield.
If you can shoot at him effectively, he's unlikely to waste time killing the hostages; he'll probably just fight you.