As part of the main story, you speak to a priestess called Corisandre. She mentions that out of her group of ten, she is the only one that survived due to a curse called The Ghost of the Veil.
You have a choice to be made from this conversation, to kill the rebels to gain access to the city or kill the forest beast and get help from Corisandre. You should kill theforest beast—the rewards are better.
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If you choose to kill the rebels, they are just north of where Corisandre is. Interact with them, and the rebel leader Jordane will tell you of his plight. Choose die, rebels to initiate the fight. You’re only up against three level two soldiers.
If you choose to kill the forest beast, you have to head east into the forest. Head north from Corisandre until you see a bridge. From there go east, until you see a giant bell, then go south. You’ll see a Wereleopard guarding a Treasure Chest. Interact with it to trigger the battle against two level two Wereleopard. Be careful here, as even though they don’t have high numbers,they will counter-attack with every hit that strikes them—melee or magic—if close enough.