Here's how to break it down:

* Fe represents the element Iron.

* (III) indicates the Iron ion has a +3 charge (Fe³⁺).

* Cl represents the element Chlorine.

* ₃ indicates that there are three Chlorine ions (Cl⁻) for every one Iron ion.

This formula ensures that the compound is electrically neutral, as the +3 charge from the Iron ion is balanced by the -3 charge from the three Chloride ions.