Hentold gives you a dagger +2, so it's worth keeping for your mage if you don't have the quarterstaff +3 or the dagger of venom. IIRC, you get some XP just by telling Hentold that you'll take the dagger back, but it doesn't measure up to the XP you can get from killing the revenant. So just kill him and keep the loot if you're in it for the xp.
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"You're a thief and a liar."
"No, I only lied about being a thief."
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