It had been centuries since Ganon was killed, and Hyrule had declined. Though a much smaller kingdom, it was still in possession of the Triforces of Power and Wisdom - and that was more than enough for Ganon. Link, who had killed him so long ago, was long deceased. Shortly after Link passed away, Ganon's underlings collected the body from its grave and sprinkled its blood over Ganon's ashes. Ganon was revived, but was very weak. He crept up to Death Mountain, and waited for his full power to return. Now, finally rejuvenated, he stormed Hyrule Castle and took back the Triforce of Power.
Princess Zelda, most recent princess of the royal line, tried her best to halt Ganon's conquest. She took the Triforce of Wisdom, broke it into eight fragments, and hid them throughout Hyrule. She also sent her nursemaid Impa to go find help. Ganon, enraged, locked Zelda up in his fortress on Death Mountain. Impa searched high and low for someone who could save Hyrule, and she eventually collapsed from exhaustion. Surrounded by Ganon's henchman, it looked very bleak. But just at that moment, a young boy came by and skillfully drove off Impa's assailants. They boy's name was Link, a descendant of the Link who had settled away from Hyrule. After hearing of Hyrule's plight, he agreed to come help.
In order to confront Ganon in Death Mountain, Link had to find the fragments of the Triforce that Zelda had scattered across the land. Link dredged through dark dungeons and fought off many beasts before finally completing the Triforce of Wisdom. He also found the silver arrows - the same weapon his ancestor had used to slay Ganon centuries ago. Link used the power of the Triforce to penetrate Ganon's defenses, and the silver arrows to send him back to the abyss. The Dark Lord had been vanquished once more.
Chapter 7 Notes
Facts for Chapter 7 were taken from The Legend of Zelda and Adventure of Link.
Yes, I know that the blood-on-ashes revival method was a storyline element in Adventure of Link, not the Legend of Zelda, but there's no reason why the same method couldn't be used in both games. There has to be some reason for Ganon to be alive again, doesn't there? The one proposed in AOL makes the most sense in this context, since it would be very easy to carry out if Link's grave were razed shortly after he was buried.
And that's all there really is to talk about. After all, it was the very first Zelda game ever made. The storyline was almost nonexistent.