Nissan Qashqai´s big brother has fully compatible AWD system. X-Trail is an ideal choice for 5-7 persons to drive around or through Iceland. This car has been one of our best sellers and is so for a reason.
Keep in mind that when you rent a 7 seated vehicle and you have all 7 seats in use the luggage space is a lot lesser so you only fit about 2 medium sized luggages depending on the size of the rental car. A roof box is recommended in such cases.