The object still floats, and the water level stays the same.
Work Step by Step
According to Archimedes’s Principle, the buoyant force equals the weight of the displaced fluid. With the wood side down, the object manages to displace enough water to float. With the iron side down, the object will still float (if it sank, it would displace a greater volume of water than before), and the object displaces the exact same amount of water as before – an amount of water whose weight equals the object’s own weight.