You enter The Whitelands only to find yourself being taken captive by the elves who have taken over the land. Once you escape, you will find Farothin waiting for you just outside the Elven Catacombs. There appear to be some Empire troops who have made camp up on the mountain. It’s time to investigate.
Travel up the mountain until you come across the Ancient Armory. To the right, you will see an Empire soldier standing next to some tents and a chest.
When you speak to him, you will discover that his party has died and that he is all that remains. After speaking with him for a while, you will have a few options to make. You can either tell him to go home, stay here, or that you will end his life.
No matter which option you choose, if you return to Farothin and report that it was only the one man, you will increase your reputation with the elves. Even if you decide to lie to Farothin about what is on the mountain, you will still increase your reputation with the elves. If you choose to send the soldier home, you will also increase your reputation with the Empire.