Iron III ion is an iron ion with a +3 charge. If iron bonded with oxygen, it would form Fe2O3 which is rust. In this case, the oxidation number on Fe is +3 and it is -2 on oxygen. This would be called iron (III) oxide.
The oxidation number of an ion times the number of the ions must equal zero when added together in a molecule with no charge. In this case, there are 2 iron molecules and each has a positive 3 charge. 2x3=6. There are three oxygen molecules each with a negative 2 charge. 3x-2=-6. 6+-6=0