Carol hugs tree that's very wet (7)
I believe the answer is:
soaking
'very wet' is the definition.
'soaking' can be an answer for 'wet' (similar in meaning). I'm unsure of the 'very' bit.
'carol hugs tree' is the wordplay.
'carol' becomes 'sing' (carol can mean to sing carols).
'hugs' means one lot of letters goes inside another.
'tree' becomes 'oak' (oak is a type of tree).
'sing' placed around 'oak' is 'SOAKING'.
'that's' acts as a link.
Can you help me to learn more?
(Other definitions for soaking that I've seen before include "Wet" , "Drenched" .)