Who is the spy the is captured and what will the gups do to the spy

Rashid proclaims that he is only a storyteller, a subscriber to the Story Water. Haroun pushes his way through the crowd. He wonders what punishment the people of Gup will give his father. Iff says that they have never actually caught a spy before; they will probably make him write, “I must not spy,” one thousand and one times, though maybe that is too severe. Haroun comes before his father and tells everyone, “The only thing wrong with him is that he’s lost the Gift of the Gab.”