Dive and locate the sea dragon, whose lair is somewhere in the sea, with your hydrophones and torpedo it before it finds you and melt your submarine with its corrosive alcaline breath. Surely, you'll not kill it so, so surface and finish it with the deck gun.
When it seems to be dead, close carefully and look for the ring in the dragon's belly, where it's incrustated. Get it before the dragon's corpse disappears forever below the waters; otherwise, you'll have to travel at *1/2 speed time to the Caribbean sea, where legends say there's another teleportation ring.
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