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' indicates an anagram.
'about' is an insertion indicator.
'free' becomes 'rid' (to be free of something is to be rid of it).
'poet' anagrammed gives 'peot'.
'peot' going 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)" .)