Easy peasy. And looking at your code, there's not much to do.
First of all, you need a virtual attribute for country
since it's a field that doesn't exist in your database and as far as I can tell, doesn't need to. And because it's rails 3, you'll need to make it accessible. Next you'll merge the country name with the tags list before you submit.
That's it.
Step 1 - Add a virtual attribute in the model
attr_accessor :country
Step 2 - Make the attribute accessible in the model
attr_accessible :description, :image, :image_remote_url, :tag_list, :country
Step 3 - Append the country name to the tag list before submit in the controller#create
params[:pin][:tag_list] = params[:pin][:tag_list] + ", " + params[:pin][:country]
params.delete :country
@pin = current_user.pins.new(params[:pin])
Also remember to replace the tag list in Show to create links to the tags.
<p>Tags: <%= raw @pin.tag_list.map { |t| link_to t, tag_path(t) }.join(', ') %></p>