The Collaborative International Dictionary of English v.0.48:

Quandary \Quan"da*ry\, n.; pl. Quandaries. [Prob. fr. OE.
   wandreth adversity, perplexity, Icel. wandr[ae][eth]i
   difficulty, trouble, fr. vandr difficult.]
   A state of difficulty or perplexity; doubt; uncertainty.
   [1913 Webster]