What does a magnet has has which makes iron things attract towards it? What happens in its suurroundings that makes ironthings attract towards it? Is it physical or what?
Magnets have very small regions inside it where small electric current runs in small circular loops. These loops can attract or repel some other loops. Many of such loops forms small regions called domains. Now iron whom magnet attracts to have these domains, when magnet is brought near them all the domains of the iron start pointing towards the magnetic force produced by the magnet. This results in a force which we call magnetic force.
Magnetic force brings about a physical change in the iron piece it attracts.