Location: Nanohana
Petitioner: Kung Fu Dugong
Reward: Small Drumstick, 5,300 Berries (for winning the battle)
Objective Reward: Small Drumstick
This small, somewhat silly Side Story is unlocked by entering the northern half of Nanohana. To meet the Kung Fu Dugongs who give the quest you'll need to do a few little back and forth missions in the south of Nanohana in order to get the Gate Key. This will unlock the path to Spice Bean Plaza. Beside the General Store on the east side of the plaza is a set of stairs leading up to a thin alleyway, where you'll meet the Dugongs.
Former apprentices of Luffy from his first visit to Alabasta, the Kung Fu Dugongs are facing a tragedy. A Sandora Dragon has raised and stolen their base, and they need further training to get their home back. They entreat the party to train them so they can take out the dragon.
The 'training' turns out to be a fight. All three Kung Fu Dugongs are Power types, and use basic physical punches. Put your Technique fighters out front - at this point in the game, Robin and Zoro - and they should make fairly short work of the dugongs. Defeating the three Kung Fu Dugongs will end the Side Story, giving the little creatures the confidence they need to battle their foe.