Don't run away, try and learn more from the priest.
The priest, in bad condition, rightfully tells you to just let her die. Before doing so, though, she instructs you to remove the blade from her arm, and use it as a weapon just in case.
She dies, right there.
You brandish the blade.
Before doing anything, anyone knows that a hobbit should check his inventory.
Foolish you, again envying the other races for their traits in using all of that inventory gobbely-gook and nonsense. You wonder how such people figure out how to even DO that.
Regardless, you check your pack to make sure you have any equipment that would be usef-

WOAH