|People involved||Silke, Garrick, Faltis, Tessilan, Glayde|
Defend Silke: 400 GP, Potion of Defence x3, -2 Reputation
Attack Silke: 400 GP, Potion of Defence, Potion of Invulnerability, Quarter Staff +1
Speak with Garrick outside the Burning Wizard, and he'll explain how his mistress Silke is being threatened and needs defending. Apparently she was supposed to perform at Feldepost's Inn but didn't show up and as a result is being hunted by Feldepost's thugs.
Garrick offers 300 Gold Pieces for our help. If we agree he'll take us to Silke who is outside the Red Sheaf Inn. Once there, he introduces her. When we speak with her she raises the reward to 400 GP and warns you not to give the thugs a chance to explain themselves.
The 'thugs' arrive acting like Silke arranged to meet them. They claim they are here to give some gems to Silke. Silke interrupts them and demands we kill them.
The dilemma is choosing who to believe.
If you read the interactions it should become quite clear that Silke is the villain in this situation. By refusing to kill the 'thugs' Silke turns on us, which turns out to be more profitable anyway as we collect the promised 400 GP from her corpse along with other loot.
Once Silke is dead, Garrick comes to his senses and offers to join our party.