The ring is located on the far side of the bay, at the extreme west of the shoreline. Follow the water around to your left until you see a purple box on the grass near the water as shown in the photo above. The exact /loc is X=1521, Y=1109, Z=100.8.
[[pos:Ring Box;210030000 1521 1109 100.8 -1]] (cut and paste this into chat for a map link)
The reward depends on who you give it to.
If you give it to the wife, Enia, you receive30,600 XP, 4,140 , 1 Iron coin which I dont know the code to since I am new, and Enia's Lunch Box (3) (PW/AA). (updated 3/2014)
If you give it to the husband, Alteno, you receive 3,600 and 27,000 XP, but no Lunch Box. (needs updating)