She's in a woolly-headed state (5)
I believe the answer is:
woman
'she's' is the definition.
(I've seen this before)
'a woolly-headed state' is the wordplay.
'a woolly-headed' becomes 'w' (this might be a standard abbreviation of which I'm unaware).
'state' becomes 'Oman' (Oman is a country).
'w'+'oman'='WOMAN'
'in' is the link.
Can you help me to learn more?
(Other definitions for woman that I've seen before include "Adult female" , "See 16" , "person not going on stag-night" , "Mature female" , "With 1a [OLD], one's rather timid" .)