Iron oxides Fe2O3 can be reduced by Al in the Goldschmidt thermite process.
True
This process is also called Goldschmidt thermite process. It involves a highly exothermic reaction like:
3TiO2(s) +4Al(s) → 2Al2O3 (s) +3Ti(l)
Fe2O3 (s)+2Al(s) → Al2O3 (s)+2Fe(l)
Do note that the reduced metal is in the fused (molten) form.
When Fe2O3 is used, this process is also known as thermite welding (used to join railway tracks). But this is not the preferred method for extraction of Iron commercially.