Lamentations  

Batarra sends you to talk to Nashii who gives you a history lesson. After the lesson, return to Batarra for the test. Batarra will ask you 3 questions about what Nashii told you. The answers are:

1. That the Erudites were hiding a base of concentrated arcane power.
2. That our anscestors fled to Kerra Isle.
3. They heard a loud noise, followed by a cloud of mist that blanketed Odus.

After answering her questions, you'll be given a lamp for your house, and told to seek out Miala, in The Hole (a nearby tavern) as part of the third quest.