A picture caption on Page A6 last Saturday about fighting in Jerusalem gave an erroneous identification from The Associated Press for a wounded man shown with an Israeli policeman. He was Tuvia Grossman of Chicago, an American studying at a Jewish seminary in Jerusalem, not an unidentified Palestinian. In some copies the caption also included the news agency's erroneous reference to the site. The incident occurred in an Arab neighborhood of Jerusalem, not on the Temple Mount or elsewhere in the Old City.