This certainly looks like the first entry under Falkland Islands in the SG British Commonwealth catalogue. Entered as FR1, with note below "The first recorded use of No. FR1 is on a cover to London datestamped 4 January 1869." FR standing for Franks.
Actually, it is the handstamp on a cover that makes the value. This looks to be a cutout from a cover. It's still pretty scarce, but it's worth a lot less. How much, I do not know.
"It dread inna Ingland" as Linton Kwesi-Johnson wrote, over 100 years later. However, it looks like an exuberant "E" to me. I write them in a similar way sometimes.
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