Premise: Iceland ( [ ˈaɪslənd ] [ ˈistlant ] ) is a Nordic island country in the North Atlantic Ocean . It has a population of and an area of 103000 km2 , making it the most sparsely populated country in Europe . The capital and largest city is Reykjavík . The interior consists of a plateau characterised by sand and lava fields , mountains and glaciers , while many glacial rivers flow to the sea through the lowlands . According to the ancient manuscript Landnámabók , the settlement of Iceland began in the year 874 AD when the Norwegian chieftain Ingólfr Arnarson became the first permanent settler on the island .
Hypothesis: Iceland is a place.
Label: ENTAILMENT