Iceland is a place.
Iceland . It has a population of and an area of 103000 km2 , making it the most sparsely populated country in Europe . 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 . Icelandic culture is founded upon the nation 's Scandinavian heritage .