Final answer:
Features can be larger than an Iteration but Stories should be small enough to fit into an Iteration. They are prioritized by the team and estimated like User Stories.
Step-by-step explanation:
The true statement about Features and Stories is that Features can be larger than an Iteration but Stories should be small enough to fit into an Iteration. Features are higher-level requirements that describe functionality, while Stories are smaller, more detailed units that describe specific requirements within a Feature.
Features are usually too large to fit into a single Iteration, so they may need to be broken down into smaller Stories that can be completed within an Iteration. The team will prioritize both Features and Stories based on their importance and the value they deliver to the customer. Additionally, both Features and Stories are estimated using techniques like User Story Points to help with planning and resource allocation.