The correct answer is option C, that is, it is reduced.
In reduction and oxidation reactions, reduction refers to the loss of an oxygen atom from a molecule or the gaining of one or more electrons. A reduction reaction is observed from the perspective of the molecule being reduced, as when one molecule gets reduced, another one gets oxidized. The complete reaction is called a redox reaction.
In the given case, iron gains electrons mean that it is reduced.
Spontaneous = exothermic. If it is not spontaneous, it is endothermic. ΔG > 0, which means that the reaction uses energy instead of emitting it.
A large quantity if hydronium ions indicates an Arrhenius acid.
It shows mass is not created nor lost but re arranged