With Bentley out of commission, Sly and Galleth wonder how to take down the Black Knight, with Galleth offering the advice of making some explosives. There are three spots where you need to get some Fire Bulbs. Go to the entrance you used for the Mechanical Menace job, and Catapult up the tree to the left to get the first one.
For the next one, remember that tower you climbed to get inside the tent to rescue Galleth? Get to that tower and grab onto the rotating rope, then jump towards the tree and press Circle to hopefully land on the branch. From here, you can use the hook to Catapult to the Fire Bulb. The last one is not too hard, as you can Catapult from the ground and spire jump to the other hook to get to the Fire Bulb.
You're now controlling Sly, so head on over to the marker to enter the Archery Game. For this, you will need to hit targets that have a target on them. The stationary ones are worth 2-3 points, while the moving ones are worth 4-5 points each. There's also a dragon that sometimes goes across the top that is worth 10 points. You need to get 120 points before the timer runs out and if you succeed, you get a bottle of Merlin's Magic Powder and complete the mission.