Heize die Schmiede an.

As soon as you accepted the quest you will receive a Heavy Satchel.
The satchel contains 90 Iron Ore which can be optained by simply double clicking on the satchel (or left click, select "open" in the drop down menu).
With those ores you will be sent to the smelter to refine them into 9 Iron Ingots.
After this you get the order to craft an Iron Longsword at the forge.


For completing the task you select on the list on the very left side the Iron Longsword.
Now you can see in the middle the required materials for crafting this weapon.
Make sure you got the 7 Iron Ingots, 2 Timber and 1 Coars Leather in your Inventory OR in the storage of the city you are crafting in. If you somehow spend/sold/lost all your Timber and Coars Leather from the Supply Run you need to refarm/rebuy it.
You can ignore the field for "Add Craft Mod" and "Add Azoth".
Select on the right side CRAFT. Make sure you craft only one Iron Longsword. You may keep you crafted sword.


Since you got more material as you need to finish the quest, I highly recommand to use the leftover to craft yourself an Iron Mining Pickaxe.
Use your new tool to gather enough Iron Ore to craft the missing Iron Tools (Iron Logging Axe, Iron Harvesting Sickle, Iron Skinning Knife).