The reactants are the substances on the left side, which react and give the products on the right side.
The reactants are Fe and O.
The product is Fe2O3.
The arrow to the right means that the reaction is going in only one direction — the only reaction happening at the moment is that Fe and O are making Fe2O3.
(s) means the substance is in the solid state, and (g) means in a gaseous state (or the substance is a gas in that reaction).
The answer is the second option
