From MMB:
Merciful Grace, lvl 40
1. Collect the small glass flask (wererat plague-crafters), spider silk (bola spiders in fungus forest), scorpion tail (white scorpions in redstones/mines) and piece of shell (giant river turtle).
2. Take these components to the gnome merchant in the shallow jungle and he'll give you the scroll of merciful grace.

From MudVille:
Gather up a poisonous tail (the tail of the White Scorpion), a small flask (Wererat Plague-crafter), piece of hard shell (Giant River Turtle), and a long silken strand (Bola Spider), and take these items to the Gnome Merchant in the shallow jungle. Ask her about the grace scroll.

From MudCentral:
The Compnents Needed for Merciful Grace are as follows:

1. Small Glass Flask (Wererat Plague-Crafter, 1%),
2. Spider Silk (Bola Spider, 4%),
3. Scorpion Tail (White Scorpion, 1%),
4. Piece of Shell (Giant River Turtle, 1%).
   Take these to the Gnome Merchant in the Shallow Jungle for the spell.