First, Iron (III) hydroxide is not well defined. It is thought to be Iron (III) oxide hydroxide hydrate FeO(OH).H2O.
Second, you have a phase issue here as reacting two solids is often difficult.
But when Iron(III) is in solution like in ferric chloride, disulfide is oxidized to elemental sulfur while Iron(III) is reduced to Iron(II).
Have a look at how chalcopyrite (CuFeS2) is processed in the copper mining industry.