@Karen America knows Iceland exists, they just don't know it's a country! No idea if this is true or not, but the story I commonly hear over here is "Vikings discovered a green island and wanted to settle there, so they named it Iceland, to keep anyone else from wanting it. Then they found an icy island and named it Greenland, to trick people into going there instead." Even without the story (which I honestly suspect is a mnemonic device), a lot of Americans are aware that Iceland = green, Greenland = icy... because if they assume the islands match their names, everybody makes fun of them.
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@Karen America knows Iceland exists, they just don't know it's a country! No idea if this is true or not, but the story I commonly hear over here is "Vikings discovered a green island and wanted to settle there, so they named it Iceland, to keep anyone else from wanting it. Then they found an icy island and named it Greenland, to trick people into going there instead." Even without the story (which I honestly suspect is a mnemonic device), a lot of Americans are aware that Iceland = green, Greenland = icy... because if they assume the islands match their names, everybody makes fun of them.