Isengard's goblin Spy-master, Krah, has been seen near Dunfast in the Whitshaws, and it is believed that his knife will be a valuable part of a collection of bounties.
'Hail, ${PLAYER}! I hear you are quite the foe-hunter in these parts. Perhaps we can work together, eh?
'I am a collector of odds and ends -- trophies of the enemy. I believe that someday they will be of great historical value, you see.
'A nasty goblin, a Spy-master named Krah from Isengard, has evidently been spotted outside of Dunfast in the Whitshaws lately. Will you bring me his knife? I'll see that you are amply rewarded.'
The Spy-master Krah can be summoned just north of Dunfast in the Whitshaws.
You should summon and defeat Krah, and collect his knife.
Britric is in Forlaw.
You have collected the knife of the goblin Spy-master Krah, and should now return to Forlaw to collect your bounty.