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Background

You'll receive this quest when you talk to Ulfric Stormcloak at the end of the Stormcloak version of the quest The Jagged Crown.


Walkthrough

Ulfric will ask you to deliver his war axe to Jarl Balgruuf of Whiterun. If you quiz him about this odd gesture, then he'll explain its meaning: "If he keeps it, I will bide my time. If he returns it to you, it means war." In other words, giving the war axe to Balgruuf will let you know if Whiterun supports the Stormcloaks or the Imperial Legion.

In Dragonsreach, when you hand over the axe to the Balgruuf, he'll discuss the matter with his advisors, and then he'll return the axe to you. There isn't anything you can do about this. When you return to Ulfric to tell him the news, he'll talk to Galmar for a bit, and then he'll make preparations to attack Whiterun.