FIERY DUST BUG. ACT 3 BROKEN?

I got the Thaumatic Sulphite from the docks, Quest says to hand it in to Lady Dialla in Solaris Temple. The quest option does not show up when I talk to her. Now I can't break the blockage and clear act 3. Is my Character broken now?

She should have changed it into the explosive stuff, make sure you can't go through the tunnel with that item.

Nevermind this issue is resolved. I retrieved the item from the docks before the battlefront/barracks(forget where it's from). It just wouldn't let me hand it in before getting the ribbon and handing that in as well. My fault I freaked for nothing. Not entirely sure on how to delete this thread now.