The correct answer is $\boxed{\text{(B) Fe2O3}}$.
Iron ore is a mineral that contains iron. It is the primary raw material used to make iron and steel. Iron ore is found in a variety of forms, but the most common are hematite, magnetite, and taconite.
Hematite is the most abundant form of iron ore. It is a red ore that is found in igneous and metamorphic rocks. Hematite is the primary source of iron for the iron and steel industry.
Magnetite is a black ore that is found in igneous and metamorphic rocks. It is a magnetic ore, which means that it can be attracted to a magnet. Magnetite is used to make iron and steel, as well as other products such as magnets and ceramics.
Taconite is a type of iron ore that is found in sedimentary rocks. It is a low-grade ore that contains a high amount of silica. Taconite must be processed before it can be used to make iron and steel.
The answer to the question “In which of the following states maximum iron ore is found?” is $\boxed{\text{(B) Fe2O3}}$. This is because hematite, the most abundant form of iron ore, is a form of iron oxide with the chemical formula Fe2O3.