One crazed bear round island or peninsula (6)
I believe the answer is:
iberia
'peninsula' is the definition.
(Iberia is an example)
'one crazed bear round island' is the wordplay.
'one' becomes 'i' (Roman numeral).
'crazed' is an anagram indicator (I've seen this in other clues).
'round' indicates putting letters inside.
'island' becomes 'i'.
'bear' with letters rearranged gives 'bera'.
'bera' going around 'i' is 'beria'.
'i'+'beria'='IBERIA'
'or' acts as a link.
(Other definitions for iberia that I've seen before include "SW European peninsula" , "It comprises Spain and Portugal" , "Spain's national flag-carrying airline" , "Peninsula encompasing Spain and Protugal" , "European territory" .)