Notice Me Elf-Pai!

With a choice between two horrible options, Nag chooses to wear the fancy towel. It flows down to below her ankles, but it isn't wide enough to fully wrap around her body. She has to either wear it in such a way that part of her crotch and one of her boobs poke out, or with the opening in the back, putting her ass on full display for the world to see.

The guards apprehend Nag before they even discover the body. It's clear that isn't her towel, making her guilty of theft, punishable by prison time. Murder, however, is punishable by execution.

She is imprisoned, then executed.
End Of Story