During the reaction \(4 \text{Fe} + 3 \text{O}_2 \rightarrow 2 \text{Fe}_2\text{O}_3\), the atoms of Fe (iron) and O2 (oxygen) are rearranged. They combine to form a new compound (iron(III) oxide, or Fe2O3), but the total number of atoms is conserved. Therefore, the correct response is:
They are rearranged.