That sword belonged to Joseph Redpath, Pamela's father - though you probably already knew that. I wish Joseph could again be with his daughter, but it cannot be so. His soul was twisted by the Scourge, and he became a monster.
Pamela's fate is sealed, but perhaps we can change Joseph's fate.
A strange gnome arrived here at this tower not long ago. Her name is Chromie. Take that sword to her. I have a feeling she will be able to help us.