The entrance to Odda's house is at #7 on the Ondra's Gift map. She would like you to find her missing son, Derrin. Benevolent, Cruel and Rational replies are possible in response to her request.
Weyd, Odda's husband, can be found at #8 on the map of the main floor of the Salty Mast. A Diplomatic option or a Might check of 16 can be used to get his attention, although a tap on the shoulder will work just as well. You can take Benevolent or Passionate options when inquiring as the whereabouts of his son.
He'll explain that he was going fishing with his son, and he only meant to stop by for a quick drink but Derrin was gone by the time he came back out. You can select Benevolent, Clever, Cruel, Rational or Stoic options in response to his fearing to face Odda after what has happened.
Now go back out to Ondra's Gift. Stairs at points marked #13 can be used to reach the shallows below the docks, but only while the sun is up. The soul of Derrin can be found at #9.
Aggressive, Benevolent and Rational replies are possible when Derrin's spirit initially expresses dismay at his predicament. Benevolent, Honest and Stoic replies are possible when it comes to convincing Derrin that he has died.
In any event, Derrin will explain that he died trying to defend a prostitute against a couple of Thugs while his father took too long drinking it up in the Salty Mast. He leaves behind the Thug's Dagger.
Now it's a matter of what to do with your discovery. You could go straight to Odda with the news. The Deceptive option will convince her that Derrin has departed elsewhere, but your rewards will be the same. The Cruel option will likewise lead straight to getting your rewards. The Diplomatic, Honest and Passionate options lead to a further dialogue branch that includes Aggressive, Cruel, Passionate, Rational and Stoic options.
Ultimately, however, your rewards are the same irrespective of your dialogue options. They are a moderate gain of positive reputation with Defiance Bay, a Fine Dagger and a Ring of Minor Protection.
You could also go first to Weyd. If you lie to him about Derrin departing elsewhere, he'll pass it on to Odda. Odda will give you the same rewards as described above, but without having to make any dialogue options based on disposition.
You can tell Weyd the truth, upon which a number of other dialogue options become available. The Cruel, Honest and Stoic options lead to Weyd staying in the Salty Mast in self-pity and without telling Odda anything. That in turn means that you will have the full range of disposition-based dialogue options available with Odda when you see her, and the rewards will be the same.
Lastly, you can tell Weyd the truth, followed by making a dialogue option that requires a Resolve check of 16 and earns Passionate disposition. That option will convince him to return home and try to be a better father to his remaining child. Odda, when you go to see her, will give you the same rewards but without any of the disposition-based dialogue options described above.
Bragan and his gang are at #31. They're kind of an afterthought, since they're not essential to completing the task. You could show them the Thug's Dagger, and then select a Clever option to get a Topaz out of it.
Alternatively, you could show them the Thug's Dagger and then attack them. They shouldn't be difficult. They leave behind:
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Now go back out to Ondra's Gift. Stairs at points marked #13 can be used to reach the shallows below the docks, but only while the sun is up. The soul of Derrin can be found at #9.
