"Ah, well met! Villagers have offended the Iron Scar by mistake! Fortunately, they have escaped death but the creatures are upset and have been acting violently everywhere. Already six people have been killed! Please, catch the Iron Scar. You are the only one I can rely on! You can find them at the Dune Cliffs. Which is south of Horizon. Please take care of them!"
Head south out of Horizon. Head through the Horizon Arena and out the east side. Take the road south until it turns west. Leave the road and continue heading south to enter the Dune Cliffs. Kill Iron Scar and then head back to Guide Sage.
"Well done in defeating the Iron Scar! Gildas and I, we must really have an eye for talent. It's almost sad to be surpassed, yet it is honor to have taught a hero like you. I hope you have a prosperous future!"