A theology graduate absorbing crack is forgiven (8)
I believe the answer is:
absolved
'is forgiven' is the definition.
(to absolve is to forgive)
'a theology graduate absorbing crack' is the wordplay.
'theology graduate' becomes 'BD' (Bachelor of Divinity).
'absorbing' is an insertion indicator.
'crack' becomes 'solve' (crack can mean to solve or decipher).
'bd' going around 'solve' is 'bsolved'.
'a'+'bsolved'='ABSOLVED'
(Other definitions for absolved that I've seen before include "Acquitted" , "Forgiven" , "Pardoned of sin" , "Forgave sins" , "Cleared of blame or guilt" .)