Visit Sir Klaus Vasper outside of the human/elf train building (in Gludin) to start the Knight quest. Bring back 3 coins of lords.
Visit Highpriest Levian in the church. Bring back 20 totems that you receive from killing Langk Lizardmen.
Visit Captain Bezique at the west gate of Gludin. Bring back 20 Poison Spider legs. Get these from killing Poison Spiders.
Talk to both Highpriest Levian and Captain Bezique and do both their quests because you can find Poison Spiders and Langk Lizardmen just south of Gludin (on the west side of the path).
As soon as you have 20 Poison Spider legs and 20 Langk Lizardmen totems, return back to Captain Bezique and Highpriest Levian to receive 2 coin of lords.
For the last coin of lords, you need to head over to Gludio and speak with Captain Bathia at the north gate. He will ask you for 10 bugbear necklaces. You get these from killing Bugbear Raiders which are located northeast of Gludio (on the east side of the path, in the small set of ruins).
Return to Captain Bathia when you have 10 bugbear necklaces.
To finish the quest, head back to Gludio and speak with Sir Klaus Vasper. Tell him you have completed the quest. He will give you a sword of ritual.
Take the sword to Grandmaster Ramos. He will grant you a Knight.