All I see is unreasonable fear (5)

I believe the answer is:
panic
'unreasonable fear' is the definition.
'panic' can be an answer for 'fear' (panic is a kind of fear). I am not certain of the 'unreasonable' bit.
'all i see' is the wordplay.
'all' becomes 'pan' (I am not sure about this - if you are sure you should believe this answer much more).
'see' becomes 'C' (the word for the letter, according to Chambers).
'pan'+'i'+'c'='PANIC'
'is' acts as a link.
Can you help me to learn more?
(Other definitions for panic that I've seen before include "Grass" , "Sudden infectious terror" , "Sudden feeling of terror" , "Alarm - terror" , "Fear out of sixteen ac" .)
