If under possible world semantics one was to assert 'it is possible that there be an orange elephant'. Is one to be understood as saying that there is an object which does not exist in this world but does in another that is an orange elephant. Or is one to be understood as saying that an object in this world (presumably an elephant) is orange in another?
Of course actuality entails possibility too, so another reading would be consistent with there existing an actual orange elephant (in 'this' world, the actual world), whether or not there exists one in any other possible world. The most direct response to your question (I think) might be to say that the original english expression is ambiguous between the two readings you give (and the third I offer). Although I think even a fairly loosely speaking philosopher would be inclined to disambiguate, and use an expression such as this -- "it is possible that this object,t his elephant x, be orange' -- to indicate your second reading, leaving the original English expression to pick out the first reading you give ... ap
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