Answer: the second option: Iron is being oxidized
Explanation:
1) Oxidation is the increase of the oxidation state (number) due to the loss of electrons.
2) In the given reaction, you can see that in the left side the atom is Fe.
When an element (atom) is not combined (or combined with it self) its oxidation state is 0.
3) In the right side of the given equation you that iron is now in form of cation with charge 2+: Fe²⁺.
That means that the new oxidation state of the element is 2+.
4) This change in the oxidation state, of course, is accompanied by the loss of the two electrons: 2e⁻.
5) Conclusion: the iron has oxidized by losing two electrons and increasing its oxidation state from 0 to 2+.
