This means to overlook or forgive bad behaviour, or to treat it as unimportant; a woman is said to condone her husband's adultery if she continues to live with him as his wife although she knows what is going on. It can be used to mean 'agree to' (perhaps reluctantly), or 'acquiesce'. If using condone in this sense note that it implies a certain amount of shared guilt in failing to punish or prevent something: Nixon may not have planned the Watergate break-in, but he certainly condoned it.
The stars represent the states of Pohnpei, Kosrae, Yap, and Chuuk. The blue field is said to represent the Pacific Ocean. Effective date: 30 November 1978.