IBT result: 5 + 1 (dagger) + 1 (stage/class rule) = 7 (PASS) 
Under FF6 formulas:
2 x 4 (current stage/level) x 5 (system roll) x 5 x 5 x 5 x 5 (Setzer's fixed dice) = 25,000 damage -- capped at 9999.
Gobbo terminated?
(Or is he really trying to test out just how tough he is?)
!pickpocket
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Tough luck! Obtained item 11: Potion! -2 to players roll!
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Meh...
Setzer can at least easily dispose of this potion shortly. While continuing on, Setzer will also be on the lookout for Chuck Norris; hiring Chuck to "fix" schopenhauer and Gobbo might be the best long-term solution...
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