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 containing iron pieces, the magnetic field can induce currents in the iron (due to electromagnetic induction). These induced currents create their own magnetic fields, which interact with the giant magnet's field. As the iron pieces are pulled toward the magnet, the energy in the system actually increases due to the work done by the magnetic field on the iron pieces as they move closer to the magnet.