Here's how to break down the formula:

* Fe: Represents the iron atom (ferric means iron in the +3 oxidation state).

* I₃: Represents three iodine atoms.

* ·2H₂O: Indicates that two water molecules are associated with each formula unit of ferric iodide.

Important Note: Ferric iodide dihydrate is a highly hygroscopic compound, meaning it readily absorbs water from the air. It's also unstable and tends to decompose in air.