I wish I could live in Iceland! The creator of EVE Online is headquartered there!
Iceland is a Nordic country in the North Atlantic. 
Yes it is, do you think it's covered in ice though? I mean, it does say ICEland after all...
I know Iceland has a permafrost there. Iceland is also volcanically active. 
Oh really, wow, well then I hope there aren't any earthquakes there!
rofl! It is geologically active too.  So I imagine it does have earthquakes. 
Mother of God, this isn't how I want to die. Please tell me that Icelandic people are prepared in case of a volcanic eruption!!
I'm sure if you go there you will have nothing to worry about. The interior of the country is lava fields and glaciers. 
It's all lava fields and glaciers??? How many people live there? Surely there's some habitable area there, right?
Good question I don't know the population. The capital city is Reykjavík.