If you have more fabric, it might be a wise idea to just cut a new one. Then you will be happier.

I ended up redoing it and it came out fine the second time. I'm glad I had enough material and fusible web to do it over.

using the tip of your iron, reheat the fusible at the wrinkle spot. CAREFULLY cut the fusible and pull the wrinkle out. When you fuse it down, it will not have any fusible at the wrinkle spot but this should only be a tiny sliver area and not affect the applique.

Thanks for answering my question but I ended up just redoing it.