In Dragons Exile, you have to fight Farosh, a spirit dragon. The dragon usually spawns near the North West area of Lake Hylia, but it is also possible to find it in other locations, such as the Gerudo Highlands. It can only be fought once, and you will need to slow the time with arrows in order to get a close enough shot to kill it. The King also provides you with a paraglider that can be used to get close to the dragon. He will also give you directions to the Karkiriko Village, which is the main trigger for the game.
Obtaining the Great Fairy Tera is not that hard, but it’s not easy to get to. The location is a little more difficult to locate, since there’s no telltale sign, like the small pool of water. The Great Fairy Tera is located in the Gerudo Wasteland, near the tip of the dragon’s tail. To find it, you must start from Gerudo Town and take a sand seal to the southwest.