To answer this question, you need to have knowledge about the geography and history of the countries mentioned.
Option A) Denmark - This option is incorrect because Denmark is not located in the north Atlantic sea. It is situated in northern Europe and is connected to mainland Europe.
Option B) Sweden - This option is incorrect because Sweden is also not located in the north Atlantic sea. It is situated in northern Europe and is bordered by Norway and Finland.
Option C) Iceland - This option is correct because Iceland is a small country located in the north Atlantic sea. It is an island nation known for its unique landscape, including volcanoes, geysers, and glaciers. The name "Iceland" can be misleading because it is not covered in ice as the name suggests.
Option D) Finland - This option is incorrect because Finland is not located in the north Atlantic sea. It is situated in northern Europe and is bordered by Sweden, Norway, and Russia.
The correct answer is C) Iceland. This option is correct because Iceland is a small country located in the north Atlantic sea, known for its unique landscape and being the setting for many Norse sagas.