A Nine Hells - related spoiler
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Blackrazor is not part of the Pride test (the dragon area), but of the Greed one. It is the "key" to releasing the genie there. You can be good and give him the weapon, or evil and kill with it. If you give it to the genie, and plan it well, you could pickpocket it off him as he floated away, without turning evil. Not that you'd find much use for the weapon this close to the end, although it
can be useful if you export it to ToB.
Killing the dragon without turning evil will be extremely difficult, as you've only got about two seconds to do it