The Werewolf is on the Werewolf team.
During the night phase, Werewolves will be instructed to open their eyes. They will be given the opportunity to see other Werewolves in play (if any), and see the Magic Word.
If the Villager team does not correctly guess the Magic Word, the Villager team will get a chance to guess who a Werewolf is. If they are correct, the Werewolf team loses.
Werewolves should be focused on hindering the group from guessing the Magic Word without being too obvious. Because they know the Magic Word, they can structure their questions to sound reasonable given the current train of thought, yet going in a completely different direction.
They should also focus on finding the Seer (someone who's TOO good at asking the right questions). If you're certain about who the Seer is, it might even be safer to force the game to end by correctly guessing the Magic Word and pointing out the Seer rather than allowing the Village team the opportunity to guess who you are.