The given chemical reaction can be broken down into the following steps:

Fe2O3 (Ferric oxide) reacts with water to form Fe(OH)3 (Ferric hydroxide):
Fe2O3 + 3H2O → 2Fe(OH)3

Fe(OH)3 reacts with hydrochloric acid (HCl) to form FeCl3 (Ferric chloride):
Fe(OH)3 + 3HCl → FeCl3 + 3H2O

FeCl3 (Ferric chloride) can be reduced to elemental iron (Fe):
2FeCl3 + 3H2 → 2Fe + 6HCl

Elemental iron (Fe) can then react with hydrochloric acid (HCl) to form FeCl2 (Ferrous chloride):
Fe + 2HCl → FeCl2 + H2

This sequence of reactions illustrates the conversion of Ferric oxide (Fe2O3) to Ferrous chloride (FeCl2) through several intermediate steps.