You are very near to rescuing Bilbo from Goblin-town, you can sense it!
Bilbo must be held captive in the dungeons of Goblin-town.
Bilbo is held captive in a cell in the dungeons of Goblin-town.
Rukzot and his minions stand between you and Bilbo's freedom!
Now that you have the key to Bilbo's cell, you can free him from his captivity.
You have freed Bilbo from his cell, but this is only the first step to the hobbit's freedom.