Perhaps Charles is cycling in Scottish town (3)
I believe the answer is:
ayr
'scottish town' is the definition.
(town in Scotland)
'perhaps charles is cycling' is the wordplay.
I cannot quite understand how this works, but
'perhaps' could be 'y' (I've seen this in other clues) and 'y' is found within the answer.
The remaining letters 'ar' is a valid word which might be clued in a way I don't see.
This explanation may well be incorrect...
'in' acts as a link.
(Other definitions for ayr that I've seen before include "Town on Firth of Clyde" , "Scottish salmon river" , "Scottish seaport" , "Scottish town sounds tuneful" , "Town in Strathclyde" .)