Full Quest Text:

“We can be friends, yes? Outside kind and inside kind be friends? This is good, yes?  Jacaar knows who hates our kind; Gray Goblins not hate you. We want to be friends! Jaacar want to warn you! Yes, friends give good warnings!

Green goblins bad, very bad.  Green Goblins buildiing up piles of weapons!  When Green Goblins get enough weapons, they make war with the outside kind… Your kind!  They come in the night and stab my new friend with own sword!  They will! I swear!

Gray Goblins know this, that is why we fight them! We protect our friend! You, our friend! Will you help stop Green Goblins? If you help, Jaacar give some of smart knowledge! Help each other, yes?”

There appears to be only one spawning blood elemental in underworld, and sometimes isn’t found at all, so it is probably preferable to kill Bloodworms.

Note: Blood elementals killed elsewhere, eg Shame Dungeon, will not count towards this quest

Bloodworms spawn in the company of rotworms, so it is possible to also collect the ingredient required for the rotworm stew recipe, rotworm meat (carve the corpse).

The reward for this task is a bag of treasure, however the questor may find that what Jaacar considers to be ‘treasure’ may not coincide with his/her own definition of the term.