The terminal has 3 connections but you have 4 wires. The answer is simple. Look closely at the terminal. It has a small red wire and a small black wire and a small white wire connected to the dryers innards on that terminal strip. Connect your pigtail's red wire to the red, black to the black, and white in the middle. Run the green wire to the frame. (MORE)
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The following link explains how to correctly install a power cord on your appliance:
http://www.fixya.com/support/r793520-3_prong_4_prong_power_cord_conversion
Read through the link thoroughly and let me know if you have any questions. I hope you find this helpful.
SOURCE: In converting a LER8648LWO from 3 prong cord to 4 prong where does the green wire go?
Green is always GROUND
SOURCE: changing 3 prong to 4 prong
My guess is that you are installing a dryer in a mobile home. National Electrical code requires them to have a 4 prong receptical. Red and Black provides your 220 VAC, the White wire carrys the Neutral side for 110VAC functions. And the Green provides the appliance ground.
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