A nurse is caring for a premature newborn whose primary health care provider prescribes iron supplementation. The newborn's parent asks why iron is needed. Which response should the nurse provide?

"Iron supplementation decreases the risk of infection."

"Iron prevents physiologic jaundice in premature newborns."

"Preterm newborns have reduced iron stores because most iron transfer occurs during the third trimester."

"Iron supplementation improves calcium absorption and bone development."