At the end of Chapter 3 when I defeated Seigfried, there was an option of either stealing the teardrop from him or not stealing the teardrop from him. Well, guess what, I did both and I could still continue on with the game. Oh by the way I use finest art to defeat him, so that he wouldn't have a chance to heal himself.

I have 3 questions.

1) What happens if you continue the game WITHOUT stealing the teardrop from Seigfried?

2) What happens if you continue the game STEALING the teardrop from Seigfried?

3) What does the teardrop do? Is it worth any gella if I sell it? Whats the purpose of the teardrop?

It's been a while since I played the game, so I may be wrong. But I think all it does is that it is an item you can use in the item menu during battle, and it heals you. The only thing special about it is that you can use it as many times as you want and it never runs out.

I think that answers all three of your questions. It won't affect the story.

As Athrun said, I'm certain it doesn't affect the story!