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Yes.
It confused me at first too. First, make sure you actually have the antidote and not the poison (I had both for some reason). Then, face the Spirit-of-the-Wood-that-resembles-a-deer-in-headlights in combat until it surrenders. Then, talk to it. Eventually, it will lead you to an option to give it to antidote in the dialogue. Forest saved. The pixies do a victory dance in your honor.
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