gcc --version
gcc (Ubuntu 5.4.0-6ubuntu1~16.04.4) 5.4.0 20160609
Copyright (C) 2015 Free Software Foundation, Inc.
This is free software; see the source for copying conditions. There is NO
warranty; not even for MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.
lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description: Ubuntu 16.04.1 LTS
Release: 16.04
Codename: xenial
Unpack it wherever you want, then in an xterminal session source /where/you/unpacked/root/bin/thisroot.sh (in order to set the required environment variables) and then you can run root in this xterminal session.
There are two possible reasons that I can see for the original internal compiler error: an actual bug in your compiler, or the compiler running out of memory. make -j1 and watching the memory usage will tell you - but it will take ages to build ROOT that way…