Good stuff. The bits you underlined look fine to me. 'sætt' = 'stt'
"sweet" (neuter nom/acc sg. of 'str'), rather than 'sætt'
"reconciled", the past participle of 'sætta'. (I guess that's what you
were thinking of with "peaceful"?)
> "Hvort skal eg svör veita hans máli eða eigi?"
> "What - should I answer his words or not"
'hvort' (ON 'hvárt' "whether", "which of two") is just a way of
introducing an either-or question, so you could simply translate it:
"Shall I answer his words or not?" The 'eða eigi' "or not" can also be
left unstated, e.g. 'hvárt grætr þú?' "are you weeping?"