Island surrounded by continent? Correct (8)
I believe the answer is:
chastise
'correct' is the definition.
(synonyms)
'island surrounded by continent?' is the wordplay.
'island' becomes 'is' (geographical abbreviation).
'surrounded by' is an insertion indicator.
'continent?' becomes 'chaste' ('chaste' can be similar in meaning to 'continent').
'is' going inside 'chaste' is 'CHASTISE'.
(Other definitions for chastise that I've seen before include "Beat" , "Reprimand, punish" , "Whip perhaps" , "Berate" , "Censure severely" .)