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Use your Witcher Senses to look behind the forge for clues about the arsonist.
This quest can be found in the main town where you and Vesemir first went to. He’s a blacksmith who’s cussing up a mighty storm.
If you go around the left side of the house and use your Senses, you should be able to see some red footprints. Inspect them.
Follow the trail using your Witcher Senses.
Do exactly as it says.
You’ll encounter a bottle that stinks of piss and booze, the tracks will suddenly end at the river where the arsonist tried to cover his tracks, but if you go under the bridge and keep left, you can continue following the tracks all the way back to a house.
Look for someone with wounds dealt by drowners using your Witcher Senses.
He’s to the left, leaning against the wall.
Talk to the suspect.
When you do, he’ll try to bribe you to not turn him into the blacksmith with 20 crowns.
If you pass, you’ll be given 25XP and he’ll try to start a fight with you. You can choose to fight him, or you can use Axii as the peaceful route and earn another 25XP. Not only all this, but you’ll also get a discount from the blacksmith’s goods if you bring the man in.