You need to gather dust from 3 stones placed in the Byway and return the dusts to her.
Obtain the dust from the Kejaan Stone of Odus, placed near one of the gates into Stonestair Byway (1 right by the archway leading away from the docks)
Obtain the dust from the Kejaan Stone of Luclin, placed near one of the gates into Stonestair Byway (1 near the gate to the Graveyard)
Obtain the dust from the Kejaan Stone of Kerra Isle, placed near one of the gates into Stonestair Byway (1 near the gate to North Freeport)
Once you've gathered the 3 dusts and returned to Batarra, she will tell you to take a leap (literally) as you'll need to take the dusts you've just gathered into the water surrounding the docks to cleanse them in a ritual.
NOTE: Jump in the water at the end of the dock, and dive down, swim around a little to get the update.
Once you've climbed out of the water, Batarra will send you to Nashii for the next quest.