Not to put too fine a point on this but you and I both found the answer "accepted" by the game, not an answer that actually solved the chess problem. See the following forum discussion:
"..I'll have to double check, but it appeared to me that the "solution" to the chess problem left the black player with a non-checkmate move to take one of white's pawn...."
Re: Citadel chess match
"You are correct. The chess match could NOT end in checkmate with one move, as stated in the quest. Unless people have different screens, which I serioously doubt, whoever came up with the quest was either incorrect or it's someone's sense of humor - and I fail(ed) to see it.
I spent (probably like you) a good half hour looking at the board, fully realizing that there were simply NO moves to answer the quest - but sure I'd missed something. heck, I even went back to a previous save! silly me. Moving the white knight to K5 (e5) will STILL allow for the black king at black Q3 (d6) to capture the white pawn at black K3 (e6) without jeapordy...."