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Location: Royal Palace Throne Room, Tienius Delitian
Mr. Delitian wants you to find the anonymous writer of "The Common Tongue" and make sure they stop "spreading the lies". Find a person other than a guard that you can get to a high disposition with, and ask them about the "anonymous writer". I spoke with Barenziah in her chambers behind the throne. Whoever you speak with, they'll tell you to check with a shady character, as in a pawnbroker.
There's a pawnbroker in the Great Bazaar, though it's the one inside the building rather than the one outside in the tent. Speak with the Argonian Pawnbroker 'Ten-Tongues' Weerhat who you might have to persuade to a high disposition, and he'll reveal that the writer is Trels Varis, who was last heard of in the Craftsmen's Hall in Godsreach.
There are a few ways you can complete this quest. At this point, you can investigate further, as you know that Granny Varis is in the Temple Reception Area. If you speak with her, and then her husband, Gee-Pop Varis outside on the western lawn of the Temple Grounds, you'll perceive that they are covering up something, and an idea will spawn to tell Trels Varis that you threatened his parents when you see him. Or, you can simply go to the craftsmen's hall directly and skip the Gee-Pop and Granny part of the quest, but won't have the threaten option.
Go there, and speak with the inhabitants in the Hall. They'll know nothing but your journal will update that you believe Trels Varis is there somewhere. You'll want to open the locked door labeled "Keep Out!" with a lock level of 70. Inside is a trap door down to a secret room with four people, the leader of the group being Trels Varis.
When you speak to him, you're offered a few choices. Unfortunately, you either need to kill him, or bribe him a lot of money for your journal to properly update. If you select the "I'm searching for the Eye of ..." response, he'll applaud your creativity and allow you to leave, but your journal won't update and he won't talk to you again. So the only way to complete the quest if you select that option is by killing him. The peaceful way is to tell him to stop the lies, and then offer to bribe him to stop. If you bribe him 1000, he'll attack you. Bribe him 3000 and he's yours.
Report back to Tienius when you're through and he'll reward you for your efforts. If you spent the 3000 on Trels Varis, tell Tienius that your compensation should be at least 3000. He'll reward you 8000. Another option with Tienius, for a nice enchanted daedric claymore, is to instead say, "All in the king's service." Thanks to John for submitting that.
After this, he tells you that Barenziah wants to speak with you.