Since, the collision is head on, the particle 1 will continue moving along the same line as before the collision, but there will be a change in the magnitude of its velocity vector. Let it starts moving with velocity v1 and particle 2 with v2 after collision, then from the conservation of momentum
mu=mv1+mv2 or, u=v1+v2.....(1)
And from the condition, given,
η=12mu2−(12mv21+12mv22)12mu2=1−v21+v22u2
or, v21+v22=(1−η)u2.... (2)
From (1) and (2),
v21+(u−v1)2=(1−η)u2
or, v21+u2−2uv1+v21=(1−η)u2
or, 2v21−2v1u+ηu2=0
So, v1=2u±√4u2−8ηu24
12[u±√u2−2ηu2]=12u(1±√1−2η)
Positive sign gives the velocity of the 2nd particle which lies ahead. The negative sign is correct for v1.
So, v1=12u(1−√1−2η)=5m/s will continue moving in the same direction.
Note that v1=0 if η=0 as it must.