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iceland - 3 day recommendations

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We are spending 3 days in iceland (2 nights) in late August. -Any suggestions for key outdoor places to visit (Blue Lagoon, Golden Circle are currently on our list) - we'll have a 4 year old with us. We're planning on renting a 4WD to get out-and-about most efficiently. Also, should we plant ourselves in a hotel REYKJAVIK, using the city as our hub - or would you recommend staying elsewhere? Thank you.

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