Kill the goblin.
From Create Your Own Story
Like the heartless creep that you are you kill the goblin with a knife that you sometimes carry around you and often use in the event of killing helpless creatures. You get 16 XP from the kill, but that doesn't matter because this isn't one of those games. But you find something interesting. The goblin was carrying a small, red flask. You confiscate it. Now what do you do?