Sin out of terror (3)
I believe the answer is:
err
'sin' is the definition.
(to sin is to err morally)
'out of terror' is the wordplay.
'out of' indicates a hidden word.
'ERR' is hidden within 'terror'.
(Other definitions for err that I've seen before include "Be inaccurate" , "have an affair?" , "Make mistake in Canberra" , "Sin" , "Make a wrong move" .)