Probably some woodland realm the elves consider their own. A likely meeting between these two characters I could imagine would be that Gunnaya is in search of some particular ingredient, and Blithe stands between her and her goal because, "Neener neener, this is our land."

And, because this is an arena roleplay, it comes to blows. :P

*Sorry for the Delay, friends are having a star wars marathon in preparation for tomorrow. Between that and my finals, I may be out of useful communication for about another 16-17 hours.