Legend

The elf senses you aren't here to harm the forest and lowers his guard a bit, he's still wondering why you're here though, you simply explain that you're passing through and making your way to Holgard.

"Well if you're heading further on, I'd advise you to avoid the cave nearby. There's a great evil coming from it. I'm on my way to tell the elders to warn them that something needs to be done about it."

You thank the elf and continue on your way