The Harassed Citizen is a blood elf citizen apparently being harassed by Gatewatcher Aendor and two Silvermoon City Guardians just at the gates of Silvermoon. The citizen changes from time to time and could be a male or female blood elf.
It's most likely a way to illustrate the current blood elf society. Like the arcane guardians who keep saying things like "you must follow the law" or "happiness is mandatory" and the mind control scene in The Bazaar. Basically, there is a lot of propaganda in Silvermoon, and those who don't comply with the ideas preached by the leadership (the blood mages and Rommath in particular) get hurt.
"Please don't say anything to me. I don't want to get into any more trouble with them."