The correct conclusion based on the provided data is:
B. A chemical reaction occurred because iron(III) oxide has different properties than iron and diatomic oxygen.
This choice is accurate because the properties (such as melting point, density, and appearance) of iron(III) oxide (Fe2O3) are distinctly different from those of the reactants iron (Fe) and diatomic oxygen (O2), indicating that a new substance was formed as a result of the reaction.