This is hard to judge, because every country has a different definition of what literacy is–how old someone can be before learning to read, and how good their reading has to be. The literacy studies were also taken at different times, but all within the past ten years. That being said, a country that has 100% literacy on any list is the Holy See, the tiny country surrounding Vatican City, because their entire population is made up of clergy and learned adults. Other countries with 100% literacy are Andorra, Finland, Georgia, Greenland, Luxembourg and Norway. The US and UK usually come in with about 99% literacy.
The second link below has detailed information on male and female literacy in every country.
According to the CIA World Factbook, Finland, Andorra, Georgia, Greenland, Liechtenstein, Luxembourg and Norway all have literacy rate of 100%. In most cases, this means that everyone over 15 can read and write, although the standards can vary slightly.
Wikipedia, whose information is from the UN Development Program, has Cuba, Estonia and Latvia the highest at 99.8%, which numbers mirrored on CIA World Factbook.
The first source indicates Vatican City has a 100% literacy rate. I would think Japan would have the highest literacy rate. Their school system is very competitive in addition to the job market. Another source lists Japan as number one which I figured from the beginning.
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