Sail is a cut content quest item in The Witcher 3: Wild Hunt, still present in the game files, but only obtainable through console commands.
This was supposed to be one of the things given to Octo, along with the shackles and nails, during The Lord of Undvik, so he can complete building the ice giant's ship. A mission objective related to it can still be triggered and marked as complete without having the item - to do so, when you reach Dorve Ruins and all the cutscenes are over, walk north and down the stairs there and the objectives should appear.
The container that has the sail is actually still in the game, but made invisible and can't be looted - a "sparkly" effect can be seen where it is, under a mast almost directly opposite of the climb-in entrance to the ship.