Replay Sequence 3 Memory 2.
You start this memory outside the tavern, you can then hire the dancers that are just outside for 150R. Run back towards the tavern and up the stairs on the right to go behind it. To the left will be a building with to enemies pointing guns at pirate hostages. Go to the right of this building and aim at the enemies and press

to make the dancers distract them. Run around the other side of the building as the dancers distract the enemies and press

to free the pirates.