You can only harvest from 5 races and you only need to do each one once. Once you have harvested from a particular race, you will no longer get the option for that race. If you look at the quest under the pause menu, it will tell you which ones you have left to do.
There is an item which should be in your inventory under the misc tab. It's called "blood extractor" iirc and can't be dropped. You may have to talk to the quest giver again. Tbh though, it's starting to sound like a bug. How long ago did you get the quest? Maybe one of your autosaves is still available.
It does NOT affect the main quest in any way. It's a side quest you get at the same time. One of the races is an Orc. Try killing an orc and see if you get the extract blood option. Some of the other races can be hard to recognise. Or try a falmer.
It does NOT affect the main quest in any way. It's a side quest you get at the same time. One of the races is an Orc. Try killing an orc and see if you get the extract blood option. Some of the other races can be hard to recognise. Or try a falmer.