Crossword Genius

Characters from across Cotswolds found living on Shetland (4)

Ross

I believe the answer is:

scot

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'living on shetland' is the definition.
Although both the answer and definition are singular nouns, I cannot see how they can define each other.

'characters from across cotswolds found' is the wordplay.
'characters from' indicates the answer is hidden within the clue.
'SCOT' is hidden in the letters of 'across cotswolds found'.

Can you help me to learn more?

(Other definitions for scot that I've seen before include "UK northerner" , "Highlander, for example" , "one from the North of Britain" , "Payment" , "Tax, Glasgow native" .)

I've seen this clue in the Irish Times.
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