Yes, Fe₂O₃ is a correct formula for a compound. It represents Iron(III) oxide, also known as ferric oxide.

Here's why:

* Fe stands for the element Iron.

* O stands for the element Oxygen.

* The subscript 2 indicates that there are two iron atoms in the compound.

* The subscript 3 indicates that there are three oxygen atoms in the compound.

Important Note: There is also a compound called Iron(II) oxide, with the formula FeO. The Roman numeral in the name indicates the charge of the iron ion. Fe₂O₃ is iron in its +3 oxidation state, while FeO is iron in its +2 oxidation state.