your code is screwed up
that code does not appear anywhere in the code for this mod...
that line is supposed to be
<img id="flags" src="', $settings['images_url'], '/', isset($context['member']['country_flag']) && !empty($context['member']['country_flag']) ? 'flags/' . $context['member']['country_flag'] . '.png': 'blank.gif', '" width="25" height="15" alt="" align="top" />'