From the Super Mario Wiki
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The object is to find the treasure inside the Nostril Cavern. The player must use the stylus to bushwhack the nose hairs, break the rocks, and tap and hold Wario to dodge any nasal mucus to make way for Wario to explore. At the end is a nose which fires nasal mucus at Wario which he must dodge, and a mucus puddle which slows Wario down. While doing these tasks, the player must bushwhack the hair off the mucus-firing nose. Once all the hair is gone, the nose sneezes and reveals the treasure.
However, when Wario takes the treasure, it touches the nose, causing it to make a bigger sneeze which creates a wave that heads back outside the Nostril Cavern. Wario must dodge any obstacles and the cavern's "walls" (by dragging him with the stylus) along the route to the exit. After this escape is successful, the treasure that was dropped by Wario will then fall from the top screen, and Wario catches the treasure, causing the player to win.