Magnetised Iron

Unfortunately, your answer is incorrect.

The magnetic force and gravity are two completely separate phenomena.

The piece of iron becomes magnetic itself because its inner structure changes. The model of the elementary magnets describes this concept: Usually, elementary magnets in iron face all directions; close to a magnet, however, they align themselves after the magnet. After being rubbed with a magnet multiple times, the elementary magnets stay in this position for long, so that the piece of iron keeps the magnetic effects without having a magnet closeby.
As you can see in the animation, the piece of iron itself forms a north and a south pole by aligning its elementary magnets.