I just talked to the mayor of orchel to continue the quest "About Racism" and I went to go speak to Phyrra and all she says is "Can I help you?" preventing me from continuing the quest. 

Phyrra doesn't say "Can I help you?", if I'm not mistaken. You might confuse her with a different girl in Orchel. Phyrra is the dark skinned elf in the grey house in Orchel, and stand left of Saphielle.
Else, check your quest log to see if you already had her dialog, or if you have to talk with someone else first.