You find the White Lady in the northwest part of the Queen's Gardens inside a cocoon-like dwelling, however Outside this structure is the corpse of Dryya, who unfortunately died in battle of some kind to which is unknown to you. Once you enter she's notified of your presence, and so she speaks "Oh! One arrives. Far it walks to find me. Did it seek my aid? Or did the path carry it by chance to so pertinant a place?"