Poet confused about free stone (7)
I believe the answer is:
peridot
'stone' is the definition.
(type of precious stone)
'poet confused about free' is the wordplay.
'confused' is an anagram indicator.
'about' indicates putting letters inside.
'free' becomes 'rid' (to be free of something is to be rid of it).
'poet' anagrammed gives 'peot'.
'peot' placed around 'rid' is 'PERIDOT'.
(Other definitions for peridot that I've seen before include "Top ride (anag) - gemstone" , "A green semi-precious stone" , "mineral" , "I deport (anag) - gemstone" , "Gemstone -- pre-do it (anag)" .)