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The next destination is Lake Hylia and the infamous Water Temple, and we find out that the Zelda that had caused Darunia's hostility is an impostor, and with the help of Ruto, Sheik and Impa must get to the the Water Temple and stop the fake Zelda before anything bad happens.

As for the rest of the description, I recommend watching the full video before reading past this point of the description

Out of all the areas from Ocarina of Time to go with, they went for the infamous Water Temple, and the recommended element for the scenario is Lightning, so picking Sheik will give you an easy time. I went with Darunia, as this is the first scenario you get to use him, and it is quite a challenge if you pick Darunia instead of Sheik, while Darunia can be a slow attacker, his Magic Hammer is very powerful, and his C1 allows him to roll into enemies.
As for the scenario, we find the fake Zelda, who is causing morale loss for our forces, and Ruto is under attack by a bunch of Lizalfos, so your top priority is to defeat the Lizalfos and guide Ruto to Lakeside Keep, which you will have to take in order to activate the floodgates. Then Sheik or Darunia will be under attack, so switch to Impa to defeat the Lizalfos, so you can have Impa at the top part of the map, while Darunia or Sheik can escort Ruto to Lakeside Keep.
Once Ruto is escorted to her destination, the Water Temple will be accessible, so I would send Sheik or Darunia to the Water Temple, while Impa stays behind to defeat some enemies, and make sure to capture Temple Face Keep, as you can get a Sealed Weapon.
Ruto will search for the Lens of Truth, but she ends up being trapped, so we have to open more floodgates again, the first floodgate switch is in SE Keep, while the second is in SW Keep, there are a lot of Big Poes in different keeps. Some Assault Troopers will also appear, this is another side mission, as your primary one is to open the floodgates, which will lead to Central Hall, where Ruto is held captive, so you will need to defeat the Gatekeeper.
Once that is done, head to the Enemy Keep with the Lens of Truth and take on the impostor Zelda, who will unleash King Dodongo to the battlefield, King Dodongo is optional, and it is a different colour to the King Dodongo you fought back in Hyrule Field. I would have Impa take on King Dodongo, as he has an elemental weakness to Water element weapons.
As for the Hylian princess herself, Zelda has an elemental weakness to Dark, but as of now, we don't have any characters with Dark element weapons, unless Sheik's Nocturne of Shadow counts as a Dark attack. This can be a tricky fight, but once the impostor is defeated, and Sheik reveals her true identity, which I wouldn't be surprised if anyone knew, considering Sheik's appearances in the Super Smash Bros. series.
With Lake Hylia completed, the Sealed Weapon is Sheik's Level 2 weapon, the Typhoon Harp, and in the base game for Hyrule Warriors, you would unlock Zelda if you completed all three different scenarios for each era. Now onto collectables, the Gold Skulltula is hidden behind some vines north of Temple Face Keep, and you will need a Boomerang for that. The Heart Container requires a bomb to blow up the boulder after saving Ruto, and you will need to play as Darunia to get the Heart Container, while the Heart Piece can be obtained by Sheik after capturing East Keep. With the Ocarina of Time scenario done, there is still the other two left.