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Answer: The given statement is true.
Explanation: If this reaction would have occurred, then this reaction would be considered as displacement reaction.
Displacement reactions are the reaction in which more reactive element displaces the less reactive element in a chemical reaction. This is based on the reactivity of elements.
Reactivity of elements is the tendency of the elements to gain or loose electrons. The reactivity decreases down the group in a periodic table.
In the given reaction, Iodine and chlorine are the elements of the same group in the periodic table and iodine lies below chlorine in the group. So, the reactivity of iodine is less than the reactivity of chlorine.
Hence, in the given reaction, iodine will not replace chlorine because it lies below in the periodic table.