Smelting is a process in which ore is heated with a reducing agent (like carbon) to extract metal. In the case of iron ore, the correct reaction that represents smelting is:
\[
\text{Fe}_2\text{O}_3 + 3C \rightarrow 2\text{Fe} + 3\text{CO}
\]
This is a reduction reaction where iron(III) oxide reacts with carbon to form iron and carbon monoxide.