Iron(III) oxide, also known as ferric oxide or rust, is a chemical compound with the formula Fe₂O₃. It consists of iron in the +3 oxidation state and is commonly found in nature as the mineral hematite. This compound is typically a reddish-brown powder and is used in various applications, including pigments, ceramics, and as a catalyst in chemical reactions. In addition to its industrial uses, iron(III) oxide plays a significant role in the environment. It forms when iron reacts with oxygen and moisture, leading to the corrosion of iron and steel structures. Understanding this process is essential for preventing damage in construction and manufacturing industries.