Country of fairy stories? On the contrary (5)
I believe the answer is:
syria
'country' is the definition.
(Syria is an example)
'of fairy stories? on the contrary' is the wordplay.
'of' indicates a hidden word.
'the contrary' says the letters should be written in reverse.
'airys' is hidden in the letters of 'fairy stories on'.
'airys' in reverse letter order is 'SYRIA'.
(Other definitions for syria that I've seen before include "Country bordering Turkey" , "In Mediterranean area" , "Captain; omit; refuse container" , "Middle-East Republic" , "Arab country" .)