The Serpent's Wand gives you 100% poison resistance, so you'll probably have a hard time handing it over to the gypsy. If you want to keep the wand and complete the quest at the same time, then just hack the little gypsy (and her friends) into tiny bits. She'll drop the Orb of Clarity for you.
If you're wondering where to get the wand, you'll get it from Kreug's library later on. It's needed to summon the Spirit of Xydusa, which will let you go further into the Serpent's Temple. So, whatever you do, don't give away your wand before doing the summoning ritual. =)
I hate how the quest items (that must be turned in for a reward) are always better than the reward. =)
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