The goat was lured away from its pen by Graham with a carrot. Graham took the goat towards the troll who guarded the gnome's islet.
It is generally known that goats hate trolls, so the goat knocked the troll off the bridge into the River Fools.
Afterward the goat left Graham, its fate remains unknown.
↑Narrator (KQ1): "It is a well known fact that goats hate trolls intensely. You should move aside and let the goat take care of this nasty troll.", "The goat butts the troll right off the bridge, never to be seen in these parts again."