You're challenged by a young dandy

You're approached by an androgynous person in a blue and white frilly outfit. "That's Alexandria, isn't she gorgeous?" they say, leaning against the wall near you. "Tell ya what, I'll let you duel for her. You win, you take red here back to your room and do whatever you want."

"And if I lose?" you ask. "I get your clothes" says the dapper NPC.