As for the location:
Just talk to Scout Jalenthil again after completing the first part of the quest. This makes it a nice quest for travel distances. You are already there when the quest becomes available.
Your new goal is to kill Steelnose Forino, the pirate leader.
To get to this person, follow your map to the exclamation mark, or just follow the yellow line on the map above to get you there quickly.
The target is on the edge of the elevated cliff at the beach. So don't go running on the beach, you went to far if you reach the water.
After talking to Steelnose Forino, he turns into a boss-type enemy (yellow name, better stats) instead of a normal NPC.
Pick up the bounty on the ground for your reward.
With the death of the Steelnose Forino, the quest is completed and along with it the 2-part chain quest.
I have to find the pirates' leader and kill him. The man is called Steelnose Forino, and he makes anyone who jokes about his nose suffer for it. I should be able to find him at the cliffs. Well then, I'll just follow my nose...
The scout was not mistaken, Steelnose Forino was indeed at the cliffs. I fought against him and won!
- Note 1: Beware of your battle tactics. Taking this oponent head on with a ranged/spell type character, might not be wise.
- Note 2: Other opponents may be in the area. Before you fight Steelnose Forino, get rid of the surrounding harassments first. otherwhise, you might get entangled with a few High Elf thieves, along with the pirate.