Emily is the girl in Oakvale that is looking for "Rosie", her teddy bear. You can help her find it, and give it to her or the bully. When you enter Oakvale as an adult, a girl will come up to you saying how you helped her find Rosie.
Dialogue
When you return to Oakvale as an adult
Emily: Hello, i remember you! We thought you died in that awful bandit attack all those years ago! So where you been all this time?
The Hero gets a flashback of the bandit attack and a burning Oakvale.
Emily viewed as a little girl: You do remember me don't you? I was looking for Rosie, my teddy bear just before the raid. After that, my parents moved to Bowerstone but I never really liked it there. Ehh... are you all right? Emily as a adult: I think I lost you there for a second. Anyway, I have to go now. but it was great to see you again! Bye!
She will then leave and you will never see her again.