In fact, whatever you choose, the dialogue will be pretty much the same. Whether you lie to her about the medicine, tell the truth or ask for it, you will find out the same thing. And if you decide to fight, Dan Shu will leave anyway, and you will have to fight with her henchmen.
Thus, if you select "Release Dan Shu", you will avoid an unnecessary battle. Otherwise, you will fight with a detachment of students struck by Mara.
The action game also received a content update.