My bad, not sure why but I read it wrong with "do need" as "dont need" since I was stuck on this quest for hours. You need Artisan 1 Processing for this Quest.
Also I can't undo the dislike button
...Yes, this quest chain leads exactly in Arehaza to the blacksmith Graule as OP has stated and even the comments in the 1st Quest chain [Processing] Weapons Be Weapons! that you need Artisan 1 to see the 1st quest chain by speaking to Graule and complete the 2nd and 3rd Quest chain in order to see this quest [Processing] Graule's Dilemma since I have completed this Knowledge already months ago.