Iron does not exhibit ___________ oxidation state.
$+2$
Step 1: Iron commonly exhibits oxidation states of $+2$ and $+3$, as seen in compounds such as FeO and Fe$_2$O$_3$.
Step 2: Iron can also exhibit oxidation states of $+4$ and $+6$ in compounds such as FeO$_2$ and ferrates (FeO$_4^{2-}$).
Step 3: However, iron does not commonly exhibit the $+5$ oxidation state, as no stable compounds with Fe$^{+5}$ are known.
Step 4: Therefore, the correct answer is (D).