One soldier of the Crusade has accused another of treachery, and it naturally becomes up to you to sort it out.
Several Crusaders will be gathered for a dispute near Leopas at 4 in the courtyard of Dragonspear Castle. Valis has accused Corinth of warning the village of Innisfall of the Crusade's arrival beforehand. It's up to Leopas to decide who's right, but he doesn't relish the task.
If you reveal to him that you're the Hero of Baldur's Gate, all of Dragonspear Castle will attack you then and there. Should you emerge victorious, Leopas has a Heavy Crossbow +1, 20 Bolts of Biting and a Potion of Extra Healing.
You could suggest letting Corinth and Valis settle the dispute through a trial by arms. Should Valis win, and you can help her along with buffs or healing spells, Corinth will leave behind Corinth's Bow. You won't get an xp reward though.
You could suggest to Leopas that you'd be willing to interview everyone and get to the truth, which he'll agree to. Corinth, Vallis and a few other witnesses will then disperse to several points throughout the courtyard. The witnesses and what they have to say are as follows:
Damarr will be at 5. She'll note that Valis always hated Corinth, even prior to current events, and thus may be motivated to fabricate accusations against Corinth. She is open to the possibility that Corinth may have betrayed the Crusade, but she also believes that the death sentence that Valis calls for would be too harsh.
Valis will now be at 6, and remains vehement in her accusation against Corinth. She provides the additional detail that a Gnome named Delton told her that Corinth had family in the village that evaded the Crusade.
Delton will be at 7. He's convinced that Valis is fabricating her accusation, but he does concede the point that Corinth had family in Innisfall.
Ravoc will be at 8. He views Corinth as weak, and lacking the "stones" to betray the Crusade.
Corinth will be at 9. He'll usually maintain his innocence. Additional dialogue options show up if Delton had previously told you that Corinth had family at Innisfall.
It is possible to convince him to confess if your Hero of Baldur's Gate is either a Paladin or a good-aligned Cleric, or has a Charisma of at least 18. You'd need to select the dialogue option of it's up to him to convince you, and then select the dialogue option that asks him whether or not he betrayed his mistress. He'll afterwards beg you not to reveal what he told you to Leopas.
Speak to Leopas again after interviewing all of the above. You have options about which verdict you advance:
Telling Leopas that you find the evidence inconclusive will anger him, and you'll receive no reward.
Pronounce Corinth guilty. He'll attack and force you to kill him. He leaves behind Corinth's Bow, a Potion of Healing and Arrows +1 as loot, in addition to the 4,000xp reward.
Pronounce Corinth innocent. Valis will attack, forcing you to kill her. Leopas will say you can take what she owned, but all she leaves behind is a Potion of Healing if you killed her before she could use it. You'll also get a 4,000xp reward. Now speak to Corinth again at 9, and he'll give you Corinth's Bow. *NOTE* If you previously convinced Corinth to confess to having betrayed the Crusade, but still pronounced Valis guilty, then you'll get a +1 to reputation as well.
Pronounce both Corinth and Valis as guilty. Pulling it off requires either a Charisma check of 17, or a combined Charisma check of 15 and an Intelligence check of 13 to get your 4,000xp. If you pull it off, you'll have to fight both Corinth and Valis at the same time. He'll otherwise become angry and provide no reward if you fail the checks.
Pronouncing Corinth innocent is supposed to convince him to leave the Crusade. But he will still be present to fight you during Chapter 11, which is likely a bug. So it's possible to actually obtain two copies of Corinth's Bow.
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"*Your WILL is strong. But you lack DISCIPLINE. Your WILL is YOUR will, not the will of LAW. There is nothing I may show you that you would SEE or UNDERSTAND.*" -Vhailor, Planescape: Torment