Zinc is more reactive than iron. So when it is added to iron sulphate solution it displaces iron. The reaction involved is:
Zn (s) + FeSO4(aq) 🡪 ZnSO4(aq)+ Fe(s) + Heat
The colour of the solution changes from green to colourless due to the formation of zinc sulphate. The reaction is exothermic in nature.