Iceland is an island in the North Atlantic Ocean. It is near Greenland and Norway, but it is part of Europe. This country has a population of about a quarter of a million people. Most of the people live in towns. Reykjavik is the capital and the largest city. Iceland is not as cold as its name sounds. The temperature in January in Reykjavik is the same as in New York City. Icelanders speak Icelandic, which is similar to German, but99% of Icelanders also speak English