This command should do the trick:
tar -xvzf VMware_Tools.tar.gz
To explain a little bit, tar collected all the files into one package.
The gzip program is responsible for compression, hence the gz extension.
f: this must be the last flag of the command, and the tar file must be immediately after. It tells tar the name and path of the compressed file.
z: tells tar to decompress the archive using gzip
x: extract them
v: Verbose output shows you all the files being extracted.