Palaos

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It's Palau in English. They're quite a large group of islands for Pacific standards, but they have less than 20,000 people. Angaur Island is the only place in the world outside Japan where Japanese is an official language. Mercherchar has a lake full of jellyfish that can't sting humans, it's a popular destination. Koror is the biggest city and on Koror Island, and used to be the capital until it was moved to Ngerulmud in Melekeok municipality a while ago. Palau owns two remote island groups, Hatohobei and Sonsorol, both of which are linguistically Melanesian unlike the main part of the country which speaks a language that's closer to Malay.

linguistically Micronesian*
My bad

Palau is a country in free association with the United States, meaning that both countries' residents are free to live in either. It relies on the US for both its defense and a currency. This arrangement is similar to those of the Federated States of Micronesia and the Marshall Islands.
Palau used to be part of the Trust Territory of the Pacific Islands until 1994, when it gained independence. Micronesia and the Marshall Islands gained independence half a decade earlier. The only remnant of the Trust Territory at present is therefore the Northern Mariana Islands.
Before it became a US territory, the Trust Territory was administered under Japan as Nan'yo Cho, or the South Seas Mandate, with its capital at Kororu (modern day Koror).

en.wikipedia.org/wiki/Palau

>free association
this basically means that they are a protectorade of the United States

Mutt-tier answer