- Make your way to the Southwest to find Village of Kausos.
- Inside Kausos, make your way to the Western side of the village.
- You will find 2 guards and a Priest holding a family hostage.
- Approach them to trigger things.
- You can then learn what is going on.
- From there, you will have the option to choose, "Let these people go" to fight the Priest and Guards.