@Jody-and-Melissa0
Ask them to cancel via AirBnB and then see if the exteuating circumstances policy comes into play - remember you have recevied zero money so far. The faster the cancel the better the chances you have of re-booking (I hope). If the AirBnB applies the extenuating circumstances policy - which it may, then you will get nothing anyway. You don't say if there is a problem with smoke - if so, then I would probably agree to them cancelling (not you...!).
Again if you receive an email asking if you wish to accept the cancellation, remember to decline, otherwise AirBnB plays this sneaky trick of saying you cancelled and it appears on your listing as a cancellation. Click that you want to continue with the booking.