The chests can be looted during combat.If you won, you will be given a reward by Thola. The quest will finish regardless of the outcome. Once they are defeated, you will either be transported back to Thola or prompted to complete the challenge of the One, which will initiate a player-vs-player phase where the players will face off against each other. The first phase involves fighting four characters (a wizard, ranger, knight, and a dog). Multiplayer: If you are playing with more than player, there will be two phases instead of one. She will tell you to challenge the other fighters to become the champion of the arena. When you are ready, speak to Thola to start the quest.
In the arena, speaking to the female near the ledge will grant you a free buff for the fight. It can be accessed by going down the hatch that's right next to her. 'We found the fighting arena of Fort Joy.' The Arena of Fort Joy is a Quest in Divinity: Original Sin II.