1. Take the Quest from the leader, they will give you wasted apple.
2. Communicate with the shop-owner!!!
3. Search in the woods (should be the same wood you fought the first/second boss) west of the tavern. If you are correct the MC will complain and then realise the scent is coming from the same location he found the Lizard Spy.
4. Go to the location of the Lizard Spy Encounter and fight.
5. After a succefull fight you will join the festivites and the leader will lose 2 sus-point against you -> liking you more.