Part 2: Kakariko Village
Exit Link's House and travel north to Hyrule Castle. Talk with the guard near the center door past the castle bridge. The guard will not believe the story Link tells him and then Impa will emerge from the castle. Impa will listen to Link and then take him inside to meet the princess. Upon entering – you will have to wait a short while so simply check out the paintings.
Eventually Impa will appear and tell you that Princess Zelda is ready to speak with you. Climb up the stairs and go through the door. After speaking with Zelda – Link will be sent out to find Sahasrahla at his home in Kakariko Village; however, before being sent on his way, Link will receive the charm.
Heading to Kakariko to Meet Sahasrahla
Exit Hyrule Castle and head to the west through that shortcut used in Part 1. Continue as far west as possible and then head north for a short spurt until you are able to continue west once more. Now travel south through the arch way to enter Kakariko Village.
Go up the first set of stairs located on the west as soon as you enter the village. Now go inside the house at the top to find who you are looking for – Sahasrahla. Once you have spoken with him – Link will have to travel to find his pupil named Osfala. Head back to Hyrule Castle the way you came and then cross the bridge near the entrance.
Continue heading east and go south when appropriate until you come to another bridge a short walk from Link's house. Cross it and head to once more to the east. Take the path north when possible and then continue north through the arch ways and up the stairs to find the passage blocked.
Getting to the Eastern Palace
Now head back to Link's house and talk to Ravio. When he asks – select the Bow or option 3. Link will now be given the Rented Bow to use but be careful as Ravio will take it back upon death. After getting the Bow – travel back to the blocked passage.
Climb up the stairs to the pedestal and the use the Bow to shoot an arrow at both of the switches on the left and right. Go through the newly unlocked passage and head to the east. Jump down the ledge and go up the stairs to the north. Continue going up each set of stairs to the north until you reach the Eastern Palace where Link will finally meet Osfala.