Act of Mercy
After checking your mail at home, head to the Wounded Coast and talk to Thrask. There are blood mages inside the cave and it's your charge to flush them out. Head into the cave and fight few a few waves of rather weak skeletons and skeleton archers.
You'll eventually fight the blood mage leader, his assisting mages, and a few more skeletons. Tank the main enemy, but be careful of his magic spells that can do some heavy damage. If you have Varric or another ranged fighter try to take out the mages from afar before they become too much to handle.
Talk to the surviving mages and try to make a deal with them. It doesn't really matter what you choose, as they will attempt to exit no matter what. However, you can get bonus rewards for letting them go free and killing the Templars.
Exit outside and talk with Thrask again. More Templars will arrive and want the mage's heads. If you have Varric he can convince them to leave no matter what. If you choose to fight, Thrask will help you take on his fellow Templars. During the fight take down the weaker enemies quickly so that they can't layer on extra damage. Get your tank on the Templars leader so that he can't harm your weaker enemies. Use cross-class attacks such as Winter's Grasp followed by Mighty Blow. After everyone is cleared, get your reward from Grace and any dead enemies.
