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The Elder Scrolls IV: Oblivion Hints
Test of Courage
1 of 8: To get to the door to this test, find the stairs in the NW corner of the room you start in and go down them, then turn left and look for a short passage on the right.
2 of 8: Inside the test area, go forward a little and look to the right for an Ayleid-style treasure chest named "Breathe."
3 of 8: It contains a water-breathing potion, which you're going to need soon.
4 of 8: Just past it is the start of the long underwater tunnel. Save your game before you go down it so that you can try again if you drown.
5 of 8: TIP: Don't use the potion you just got until your breathing meter is almost gone.
6 of 8: Make your way down the twisting passage until you reach another "Breathe" container from which you can nab a second water-breathing potion.
7 of 8: From that container, go directly west to reach the top of a side tunnel, then swim down to the door to the grotto.
8 of 8: You'll be safely above water in there, so head forward and grab the element of courage.