The Book Collection side quest in Fable Anniversary is available in Bowerstone South when you first visit the area.
It is an open ended quest that can last through the entire game.
To start the quest you must speak with the teacher in Bowerstone (you can find it near the house that can be bought).
He tells you that Lady Gray cut their funding and every book donation is more than welcomed.
The following Fable Anniversary Book Collection walkthrough includes some important tips on how to deal with the side quest.
Item: Bright Wizard Hat / Dark Wizard Hat
After you talk to the teacher you can start donating books that you found in your travels. If you looted the Guilds library you should already have a few books to donate.
You can always return when you find more books (you can steal them or even buy them from traders). When you give him a book you will trigger a cutscene that is based on the content found in that book.
There are good books and bad books, and you will find the most in a category based on your characters alignment. After you donate 9 books you get a Bright Wizard Hat or a Dark Wizard Hat, depending on which book you donated.
Pay attention to what books you donate if you want a particular reward. However, the quest doesnt end here, because you can return to give more books whenever you want.
Try to find 25 books that are accepted by the teacher to get a Silver Key as a reward. Besides that you will unlock the Education Rules The Nation achievement.
There are many books to find in Albion, but only some of them can be donated. Below is a list of 25 accepted books and the regions where you find them first.
A Love Story (Heroes Guild)
Creatures of Albion Book I (Heroes Guild)
Creatures of Albion Book II (Heroes Guild)
Creatures of Albion Book III (Heroes Guild)
Eyes of a Killer (Bowerstone South)
Jack of Blades (Heroes Guild)
Making Friends (Heroes Guild)
The Arena (Heroes Guild)
The Balverine Slayer (Knothole Glade)
The Dragons (Heroes Guild)
The Guild of Zeros (Bowerstone South)
The Northern Wastes (Heroes Guild)
The Oakvale Raid (Oakvale)
The Old Kingdom (Heroes Guild)
The Other Land (Heroes Guild)
The Pale Balverine (Heroes Guild)
The Repentant Alchemist (Bowerstone South)
The Sock Method (Oakvale)
The Tailor’s Tragedy (Bowerstone North)
The Tale of Maxley (Heroes Guild)
The Tale of Twinblade (Heroes Guild)
The Trials of Aarkan (Oakvale)
The Ugly Guide (Oakvale)
Windbreaker Rule Book (Bowerstone South)
You Are Not a Bad Person (Bowerstone South)