The is hidden in the Graveyard. You'll need the Pegasus Boots from the third dungeon to ram the library shelf in Mabe Village and find the secret code. Red Tunic: Doubles your attack power. Blue Tunic: Cuts damage taken in half.
The 3DS Virtual Console version adds a few modern conveniences that weren't in the 1998 original: The Legend of Zelda: Link’s Awakening DX 3DS CI...
You must start this early in Mabe Village by winning the from the Trendy Game. The Legend of Zelda: Link's Awakening DX Video Walkthrough The is hidden in the Graveyard