Discussion about Heroes I.

I apologize, but let me describe a situation. Our hero has 10 gargoyles left, while the opponent has 30 peasants. The opponent's hero needs to kill one more gargoyle to level up. The first time, we let the gargoyle attack his peasants; he kills one, and we retreat. The second time, we simply eliminate his 30 peasants. What will happen the third time? There won't be a repeated battle (I assumed this was a constantly repeating battle; if not, I apologize).