This quest can be solved by just paying the npc 1000 gold, and you'll get 800 back as a reward + relations with the quest giver.
I agree the problem with Konane in Bannerlord is that its put on "grand master setting".
I've played vs computers online and have no real issue of beating them, but in Bannerlord.. not so much.
I do win a few times, but its really rare, the AI "dont make human errors" and thus its too hard vs fun.
So yah why Taleworlds choose to do it like they did is beyond me(and or they are really good at the game, and dont get it how its hard for casual non-konane players..)