Nation of confused laity (5)
I believe the answer is:
italy
'nation' is the definition.
(Italy is an example)
'confused laity' is the wordplay.
'confused' indicates anagramming the letters.
'laity' with letters rearranged gives 'ITALY'.
'of' is the link.
(Other definitions for italy that I've seen before include "Land for strange laity" , "It was the core of the Roman Empire" , "Land for laity, oddly" , "Land of Tuscany and Umbria" , "Mediterranean country" .)