The medicine is in Cyanwood city.
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In Cianwood City you receive the medicine from the medicine shop. To give the medicine to the gym leader you have to go to the top of the lighthouse in olivine, which is where she will be. She will then return to her gym where she will battle you. Be careful - her Pokemon (2 magnemites and a Steelix) can be tough! Good luck! :)
you have to go up the stairs from the bottom level and fight your way up to the top. then she will ask you to go across the sea to cianwood to get medicine for the pokemon. after you get the medicine from the last house on the bottom left, go back using the elevator and give her the medicine and she will go back to the gym
easy if you want to challage the Pokemon leader you have to go to the light house and go to the top and find the gym leader then you challage the leader get the HM then you go to the Pokemon league
u can get the medicine on cinabar island in a small house near the gym
You have to beat Cianwood gym, get the medicine from the Cianwood medicine shop, and take it to the top of the lighthouse. Then, the gym leader of Olivine will fight you. Good luck!