[Dan Hibiki]

Roll is right (partially).

Sagat and Sakura encounter a psycho-drive possessed Ryu, and bring him to his senses. Ryu does a Shin Shoryuken to Bison, and he retreats to his base.

Chun Li is planting bombs around the base while Charlie is rescuing Jun, Juli, Cammy, et al who are possessed by the psycho drive. Bison finds Charlie and they fight. Charlie keeps Bison in the base until it blows up. Charlie is killed, and Bison's body is damaged beyond repair.

Just then, Rose shows up to kill Bison. After all, Rose is Bison's good side that he purged from himself years before to make his psycho drive more effective on himself. Bison sees her, and invades her mind, taking her over and abandoning his own body.

Shadaloo scientists create a ####ody for him, and he abandons Rose's body. Rose is gone, because the two halves have permanently rejoined. That's the story in SFA3 to just before SF2.