Final answer:
Vatican City is currently the smallest nation-state in terms of territory size.
Step-by-step explanation:
Just to distinguish, a nation-state is a country whose territory corresponds to that occupied by a particular ethnicity or group who have formed a nation.
For example, Japan and Iceland.
A country, simply put, refers to a distinct territorial body or government.
A nation-state, country, and state have distinct definitions with overlapping characteristics.
The term state can refer to a smaller area within a larger country, or it can also mean an entire country itself, like Russia.
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