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If you go back to Orchard Farm, you can talk to the man of the farm to activate this quest.

Once you've accepted the quest, go past the house on the left path to enter a cutscene.

Now you will need to go to Greatwood Lake, use the exit to the left, once there head to the top right of the mini-map, there will be a short cutscene and you will see the bandit you need to kill.

Once you kill him you will get the necklace. Take it back to Orchard Farm and talk to the man of the farm again, then you can talk to the old woman as an additional scene after the quest has been completed.

Beating this quest earns you
400 gold
200 renown