The term 'Canal Setting' can be broken down into two crossword solutions: EAR (3 letters) and PANAMA (6 letters). The term 'EAR' is an acronym for the PANAMA Canal, which is a man-made waterway that connects the Atlantic and Pacific Oceans. The canal was built by the United States in the early 20th century and is located in the country of PANAMA. The second solution, 'PANAMA', is the name of the country in which the PANAMA Canal is located.