As everyone is saying, it is possible to get to exposure level 1. It just gets fairly confusing but this is what worked for me.
once back at the village
-see the doctor in the inn (he has a priest or someone with him)
-see uncle in the inn and meet him at the mine, guide him and a hot spring event plays out
-do the hide and seek event (go to the child at the north farm house)
-do the study event (the child at the inn, it ends up being 2 or 3 times)
-let Boo sleep over (he is in the center map near the right path, again 2 or 3 times)
-see the book merchant in the inn and you should be able to buy it now (500g)
-go home and read the book (right book shelf but you have to wait until night to read it)
-then you should be level 1 exposure and can see the tavern events (you can only remove your jacket as of now)
Hope this helps someone