Final answer:
Hepcidin inhibits iron absorption and limits iron transfer from macrophages to erythroid precursors.
Step-by-step explanation:
The function of hepcidin is to inhibit iron absorption and limit iron transfer from macrophages to erythroid precursors.
Hepcidin binds to the ferroportin transporter on intestinal mucosal cells and macrophages, preventing the absorption of iron from the intestines and limiting its transfer from macrophages to erythroid precursors.