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Fixed it myself. Just follow the path around the back of the inn and you can find the site on your own. Delphine will show up and help in the fight as well.
When I arrive and meet Delphine, she says to search the inn. But the quest marker is on the woman kneeling in front of the outside of the building. She doesn't reply when you talk to her, and Delphine just stands there.. Any answers on how to fix it?