Final answer:
Iceland is the country that occupies a position on both the Mid-Atlantic Ridge and a geological hotspot, leading to its high volcanic and geothermal activity.
Step-by-step explanation:
The country that sits on both the Mid-Atlantic Ridge and a hotspot is Iceland. Iceland is known for its unique geological setting, which includes being situated on the boundary of the North American and Eurasian tectonic plates as well as above the Iceland hotspot.
This position leads to high volcanic activity and the creation of new crust as the tectonic plates diverge along the ridge. The interaction with the hotspot results in additional volcanic and geothermal phenomena, such as the famous geysers and hot springs found throughout the country.