What am i suppose to do with this item?

[Dovedragon]

i finish the II part of it but im unsure about what im suppose to do with it?

[Satsuma]

I don't really know what item you mean, but if you mean the diamond and you've already done the quest, you can just sell it for some gold.

[Dovedragon]

i ment the item you get after finishing the quest, is the quest not finish yet owo?

[Wolftail]

Turn into a Lizard at the Crystalkthicket Cave then talk to the Elder, and he will give you the reward.