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Arcania: Gothic 4 Hints
Find Mermund and release him
1 of 7: Move into the first cave room with your weapon drawn, then lure the nearest rebel back outside so the other two can't be shooting you while you fight him.
2 of 7: After the first one's down, run back into the cave and over to the right where one of the rebel archers is up on a wooden platform. Run up and start hacking him in the feet, since that's faster than running around to where you can get up on his platform.
3 of 7: Run back out of the cave to heal up if necessary after he's dead, then look to the NE of his wooden platform for another one with a rebel on it. Give him the same treatment.
4 of 7: Move on past his platform and go down a cave tunnel that leads to another rebel room. There are three more rebels in it, so try to lure them off one at a time.
5 of 7: The next room down the line has four rebels, including a more powerful one named Clargor. Do your best to lure off and kill the other rebels before fighting him. (Or lure Clargor away from the rest.)
6 of 7: The next room down the line is empty, but the one past the barred door has the powerful Master of Inquiry in it. Hit him with some ranged damage to start with, then do your best to dodge his power attacks while whittling down his health.
7 of 7: After he's killed and looted, open the barred door on the east side of his area and talk to Mermund to get the "In the Wrong Hands" quest.