You can find the letter on the top of the dam in the south of the map at D7– the western end of the lake that touches Misty Meadows. You’ll have to build up to the location if you don’t land directly on the light, so keep that in mind.
The loading screen for the week appears to show one of the final battles for the island in Season 1. We still don’t know much about how this season will come to a close, but it will likely have something to do with how these “evil twin” characters deal with the island inhabitants.
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