Below is Allakhazam's writeup of the quest. It looks like you are skipping step 3 and trying to go to step 4.
You can type /journal and a popup will come up showing you what step of each quest you are on. I think this is the problem. It has been a while since I had a level 1 toon in albion, and I don't feel like creating one atm, but try this first and let me know.
In a little bit of time you will be laughing at this that you couldn't figure out Level 1 quests. We were all noobs at one point or another : ) Stick with it, you will get the hang of it eventually.
1) Speak with Master Frederick, at the tower east-northeast of Cotswold, loc=19161,26540 Camelot Hills.
2) Speak with Cemmeth Budgwold who is at the Camelot Bridge, loc=9560,28252,2280 dir=296 Camelot Hills. Hand him the supplies from Master Frederick.
3) Speak with Farma Hornly, inside the building at loc=10870,30358 Camelot Hills, Cotswold
4) Speak with Lundeg Tranyth, same building as Farma Hornly, at loc=10860,30592 Camelot Hills, Cotswold, for your reward.