Quest: Nature of the beast

 Im at the part where i have to bring Zathrian the elf leader to the werewolves. No matter what i do, i end up picking a side and fighting one of them. The problem is i cant beat either one of them, im on hard mode btw. I heard there is a way to talk them into a peaceful resolution, but so far no matter what choice i make i end up taking a side and a fight breaks out.

Is there a way to make a peaceful resolution to this quest through the conversations? if so how?