Original: It was founded in 930 at Þingvellir, (the "assembly fields" or "Parliament Plains"), situated approximately 45 km east of what would later become the country's capital, Reykjavík, and this event marked the beginning of the Icelandic Commonwealth.
Simplified: It was founded in 930 at Þingvellir, (the "assembly fields"), which is almost 45 kilometers east of Iceland's capital, Reykjavík.