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will see this
"will see that things go well for the godly person." The word "this" refers to everything good that the writer has described in the previous verses about the godly person.
he will gnash with his teeth
Gnashing one's teeth was a gesture of scorn. See how you translated a similar phrase in Psalms 35:16. (See: rc://en/ta/man/translate/translate-symaction)
melt away
The writer speaks of the wicked person's eventual death as if that person were something, such as ice, that can melt. AT: "eventually die" (See: rc://en/ta/man/translate/figs-metaphor)
the desire of the wicked people will perish
Possible meanings of "desire" are 1) the emotional desire that wicked people have. AT: "the things that wicked people want to do will never happen" or 2) it is a metonym for the things that wicked people have desired. AT: "wicked people will lose the things that they desired" (See: rc://en/ta/man/translate/figs-metonymy)