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The Villain Manifesto

You bed down for the night, and it isn't long before the gentle breeze and the soft sounds of nature have lulled you into a quiet repose.

When you awaken, you are not where you were last night, that's for sure! You look about at a cavernous hall, lit by torches. The stalagtites hanging from the roof of the cavern make foreboding shadows that dance above you.

It is then that you notice an old Elven druid is focused intently upon you. He is seated in a humble wooden chair directly across from you. Your first instinct is to move ever-so-slowly toward any exit, but you find that you are bound to where you are. If you still have the dagger, it's pretty obvious that you can't get to it.

The old druid begins speaking to you in Elven, forgetting himself momentarily. He then reverts to the Common language:
"What were you doing in our wood, stranger?"

This one question could either be meaningless chatter from an old watchdog, or it could be a feeler for your intent, upon which hangs your future presence in this world.

How do you answer?