Country that's confused Meg Ryan (7)
I believe the answer is:
germany
'country' is the definition.
(I know that Germany is a country)
'confused meg ryan' is the wordplay.
'confused' is an anagram indicator.
'meg'+'ryan'='megryan'
'megryan' with letters rearranged gives 'GERMANY'.
'that's' acts as a link.
(Other definitions for germany that I've seen before include "A World War Two Axis state" , "EU member" , "Central European country" , "European nation" , "Mary, gen up on the country" .)