As a druid, you should (my recommendation) take Produce Flame x1 and Cure Light Wounds x2, since you can instantly switch out those spells for Summon Nature's Ally, which is a good spell for emergencies!
I guess, the chairs, but if I were you I would not try to fight the dwarves. All your companions aren't at the tavern at the moment, with the exception of Calethen, who is busy drowning in a tankard of Orc Blood Brew at the moment. Meanwhile, although the dwarf's companions are drunk, they will join their comrade if it comes to an altercation.