Examine three chests to determine which one has the floozlegigs in it. The chests are located on the other side of the tower north of Penny ( -570, 0, -570 ) /waypoint -570, 0, -570. Click each chest for the updates.
Return to Penny and tell her it is the silver chest. She asks you why and the answer (3rd option) because if you chose either the wooden box or the gold box it would make all the labels either true or false.