James in Iowa recreated World War II battle (3,4)
I believe the answer is:
iwo jima
'world war ii battle' is the definition.
'james in iowa recreated' is the wordplay.
'james' becomes 'jim' (short for James).
'in' is an insertion indicator.
'recreated' is an anagram indicator.
'iowa' anagrammed gives 'iwoa'.
'jim' put inside 'iwoa' is 'IWO JIMA'.
(Other definitions for iwo jima that I've seen before include "Pacific island known for World War 2 battle" , "site for WWII battle" , "Second World War battle island" , "Largest of the Japanese Volcano Islands, heavily fortified in World War II" , "fierce battle" .)