Spell exaggerate (7)
I believe the answer is:
stretch
I believe this is a double definition.
'spell' is the first definition.
(I've seen this before)
'exaggerate' is the second definition.
(thesaurus)
(Other definitions for stretch that I've seen before include "Extend; term in prison" , "What one does in prison" , "Time lag's got" , "sort of limousine" , "Period of time in prison" .)