Here is the information available for the death of Ole and Mari Finnestad's grandson, Ole Alfred Knutson. Ole was the second son born to Elizabeth (Finnestad) and Ole Andreas Knutson, (unless the 10th child that I'm missing was a male).
I don't know why Ole was sent to the the Watertown State Hospital, but he spent the majority of his life there until his death in 1934.
Note the misspelling of Elizabeth Finnestad, which is listed as "Finnester". Otto's father's first name, Ole Andreas is spelled incorrectly as "Oleander".