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Background
This quest's completion is mutually exclusive with
At a Crossroads: Vernon Roche. It is received from Zoltan right after Cedric dies in the main quest
Where is Triss Merigold?. It is also a deciding factor on how Act II will play out from your perspective.
Walkthrough
Zoltan and Dandelion will come rushing towards you at
#1, where Cedric died. Both Roche and the Scoia'tael are interested in altering the fate of Flotsam. Zoltan as a dwarf leans on the Scoia'tael's side and urges you to talk about their plans before making further decisions.
Depending on the decision made during The Asssassins of Kings (if you helped Iorveth or not), either both Iorveth and Zoltan or just Zoltan (because Iorveth is captured) will be waiting for you at the elven ruins (
#2) where you'll discuss a plan how to free Iorveth and set sail for Vergen city in Aedirn. Note that you do not have to make a decision right away, you can hear out their proposition first.
If you decide to support the Scoia'tael cause, you'll complete this quest (automatically fail the other one,
At a Crossroads: Vernon Roche) and get a new one called
The Floating Prison. You'll also receive 50 experience points.
1 - Zoltan
2 - Zoltan or Iorveth & Zoltan