SPOILERS:
The US embassy and the Italian police (or just the obviously very powerful ginger inspector with high voice) faked his death. The cops were powerless against the kidnapping crew (who was possible tied to the mob), and saw Creasy as their deus ex machina "quick fix". The faking was their way of thanking him. Otherwise they would've had to arrest him for vigilantism and even if they had somehow decided to simply let him go, the rest of the kidnapping crew (we never get to know how many people was involved) would've been on his tail to get revenge as long as they thought he was alive.
The girl was not shown in the final scene up close because the director wanted to leave the audience with their own impressions about the (physical and psychological) state that she was in after this horrendous ordeal. You hear and see bits and peaces of information on how she's being treated at the hands of the kidnappers (the gay guy says he tried to convince one of the guys not to touch her; also we see her with her left hand in bandages at one point as if her hand was cut or possible missing a finger) and it's up to you to decide what they actually had (or hadn't) done to her during the time she was their hostage.
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