German Panzer Grenadier Squad

Had a conversation today about Panzer Grenadier squads with my opponent and now we need a clarification. Simply put, does that squad allow 1 or 2 choices from Recce, engineers or specialists units? I said only one since it's one squad but my opponent said 2 are allowed since there are 2 units in the squad, MG team and rest of the squad. Witch is correct?

One, the LMG is a team not a unit, but it still requires an order of course.