Elizabeth I and II in rags (7)
I believe the answer is:
bothers
'rags' is the definition.
('bother' can be a synonym of 'rag')
'elizabeth i and ii' is the wordplay.
I cannot really understand how this works, but
'elizabeth' could be 'er' and 'er' is found within the answer.
This may be the basis of clue (or it may be nonsense).
'in' is the link.
Can you help me to learn more?
(Other definitions for bothers that I've seen before include "Upsets" , "Troubles" .)