Damsel in Distress is a short task in the 
Kuttenberg region that serves as a cautionary tale for Henry. While it appears to be a rescue mission at first, things are not quite what they seem at the Rabstein Mill.
How to Unlock Damsel in Distress
The availability of this task is tied to your main story progress. It typically becomes available after completing the main quest Via Argentum (
Via Argentum).
To start the quest, look for a quest tipster icon (a blue exclamation mark) in 
Bylany. Speak to Baker or Innkeeper and ask if he has any work. He will mention a situation at the mill between Bylany and the Old Lhota fast travel point.
If you travel to the mill before receiving the tip from the Quest Tipster, the woman may not spawn in the shed.
Investigate the Mill
Once you have the tip, travel to the unmarked Rabstein Mill. As you approach the shed, you will hear a woman yelling for help from inside a locked shed.
You must open the shed to begin the Damsel in Distress quest.
Freeing the Mill Maid
The shed door has a Very Easy lock, so you will need to use your lockpicking skills to open it. Inside, you will find a woman who claims to be the miller's wife.
She tells a harrowing story of how her husband has been mistreating her and has recently locked her in the shed while he went to fetch an axe to kill her.
She begs you to find him and stop him before he returns. Agree to help her to progress the task.
Searching for the Miller
The woman directs you to a woodshed located around the back of the mill. Head to the marked area and search the premises.
You will quickly find that the woodshed is empty and there is no sign of a man with an axe. The woman, obviously, lied.
The Miller's Confrontation
With no miller in sight, return to the shed where you found the woman. You will discover that the "damsel" has vanished, and in her place stands the actual Miller accompanied by a guard.
It turns out the woman was not the miller's wife, but a thief he had caught and detained. By "rescuing" her, you have allowed a criminal to escape with the miller's property. The miller and the guard will be understandably furious and will demand compensation or justice.
Damsel in Distress All Endings
You have several options to resolve this confrontation:
Skill Checks: You can attempt a hard Speech, Domination, or Intimidation check. If successful, you can convince them to let you walk away without penalty. This is considered the best outcome.
Pay the Fine: If you fail the checks or don't want to risk it, you can pay a fine of 500 Groschen to cover the cost of the stolen items. Although it is fair to say that the Miller claims the woman only stole food, and he wants 500 Groschen, which is a bit too much.
Flee: You can simply run away from the area, but you will become wanted.
Kill them: Select Flee and then simply kill them to avoid being wanted.
Once you have resolved the conversation with the miller, the task is complete. While there is no immediate gold reward for this quest, you can at least get a small reputation boost.
Damsel in Distress FAQ
When can I start Damsel in Distress?
Usually after Via Argentum. Ask the Baker or Innkeeper in Bylany for work first so the quest tipster sends you to Rabstein Mill.
Where is Rabstein Mill?
Between Bylany and Old Lhota on the river. It stays unmarked until you get the tip.
What is the best ending?
Pass the hard Speech, Domination, or Intimidation check at the miller confrontation. You walk away free with no fine and no wanted level.
How much is the fine?
500 Groschen if you pay instead of passing the skill checks.
Was she really the miller's wife?
No. She was a thief he had locked up. You accidentally let her escape with his property.