I don't know if anyone else had this problem, but I couldn't deliver the letter to Fahmin at first. There was no option to give the letter to fahmin from merrel, so I just kept googling for a solution but found none. Then I thought; 'what if I just do the quests Fahmin gives me, and we'll see what happens?' Guess what. You have to do those quests first in order to even deliver the letter to Fahmin, so yeah. There you have it.

I thought it was a bug at first.