I2 will be reduced to I−
there will be no redox reaction
I− will be oxidised to I2
Fe2+ will be oxidised to Fe3+
The favorable reaction is the oxidation of iodide ion to iodine.
I− will be oxidised to I2
2e− + Fe+3 → Fe2+; E=0.77V
2I− → I2 + 2e− E=0.536V
2Fe+3 + 2I− → 2Fe+2 + I2; E=Eox+Ered=0.77−0.536=0.164V