[ ] Bring round the subject of the fox children, but avoid mentioning the Diao connection you discovered, leave the matter with the deviant cultivation and sacrificial practices going on. [70% Success. Success means avoiding threats and having some fraction of the Diao enforcement turning to rounding up stray children. May be temporary.]
I don't really see any particular benefit to causing trouble for the Diao and Madam Gray with option 2. We just got this conservative clan to talk with us and work with us in some capacity. Frankly, I don't think we need to make Madam Gray and this whole sacrifice/deviant cultivation mess our problem at all. Ling Qi is only Third Realm, has a lot on her plate. We don't need to throw ourselves headlong into literally every problem that comes our way.
I don't really see any particular benefit to causing trouble for the Diao and Madam Gray with option 2. We just got this conservative clan to talk with us and work with us in some capacity. Frankly, I don't think we need to make Madam Gray and this whole sacrifice/deviant cultivation mess our problem at all. Ling Qi is only Third Realm, has a lot on her plate. We don't need to throw ourselves headlong into literally every problem that comes our way.