The correct statement is:
Iron pieces accelerate toward the magnet, and the energy stored in the system increases.
When a giant magnet moves above a pile of iron debris, the magnetic field exerts a force on the iron pieces, causing them to accelerate toward the magnet. As the iron pieces move closer to the magnet, the magnetic potential energy in the system increases as they are drawn into the magnetic field, thus increasing the total energy stored in the magnetic field.