Pick out record by English navy (7)
I believe the answer is:
discern
'pick out' is the definition.
(I know that pick out can be written as discern)
'record by english navy' is the wordplay.
'record' becomes 'disc' (eg a CD, compact disc).
'by' says to put letters next to each other.
'english' becomes 'E' (abbreviation as in OED).
'navy' becomes 'RN' (abbreviation for Royal Navy).
'disc'+'e'+'rn'='DISCERN'
(Other definitions for discern that I've seen before include "Espy" , "spot" , "See" , "Make out, distinguish by eye" , "Perceive - distinguish" .)