Watcher Ladimore was unable to help her father before he committed those heinous acts that have caused his soul to wander. She asks you to place her ring on his grave, hoping that he will somehow sense it, and her forgiveness.
You return to the grave one more time, and place Sarah's ring on the grave. As you do, though, the spectral form of Morgan Ladimore appears before you. The spirit tells you of the burden that has been lifted from his shoulders, and in gratitude, it leaves you its sword, Archeus.