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Head to Black Jay's cottage at #13 on the map, and talk with him. He may or may not mention his wife's missing ring. Whether he does or not is unimportant. The important part is that you can still complete this quest, one of the easiest in the game. Right across road from Black Jay's, and directly on the plateau south of the Church you'll find a lone goblin, at the X on the map.

The moment he sees you he'll initiate combat. You won't find many fights that are less challenging than this, so use any means you want end its life, and loot the body for a ring belonging to Black Jay's wife. Take it back to Black Jay and he'll offer a reward: +1 arrows, Boots of Elvenkind or a Cloak of Elvenkind. The boots are more rare in the game, so you may wish to take those. Thus ends this quest.