Crossword Genius

Place or race for two-year olds (7)

Ross

I believe the answer is:

nursery

I'm a little stuck... Click here to teach me more about this clue!

'place' is the definition.
Although both the answer and definition are singular nouns, I can't see how they can define each other.

'race for two-year olds' is the wordplay.
I cannot really see how this works, but
'year' could be 'y' and 'y' is located in the answer.
The remaining letters 'nurser' is a valid word which might be clued in a way I don't understand.
This may be the basis of the clue (or it may be nonsense).

'or' acts as a link.

Can you help me to learn more?

(Other definitions for nursery that I've seen before include "Where kids learn" , "Baby room or where to grow plants" , "where small fry are found" , "sort of rhyme" , "Creche" .)

I've seen this clue in The Guardian and The Sun.
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