I held out for capital (5)
I believe the answer is:
delhi
'for capital' is the definition.
(New Delhi is the capital of India)
'i held out' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'i'+'held'='iheld'
'iheld' anagrammed gives 'DELHI'.
(Other definitions for delhi that I've seen before include "Indian territory" , "Ancient city" , "Indian state" , "Plumbing ring" , "Asian city" .)