Exaggerate term of imprisonment (7)
I believe the answer is:
stretch
I believe this clue is a double definition.
'exaggerate' is the first definition.
(I've seen this before)
'term of imprisonment' is the second definition.
(a stretch of jail time)
(Other definitions for stretch that I've seen before include "Make longer/wider" , "Lengthen - time in jail" , "Expand" , "extended" , "Make to go further" .)