Balancing means that you have the same number of atom on one side as you do on the other. The reason for balancing is because atoms are not lost or created during a reaction. Keep in mind that when you balance you multiply the whole formulae whether its an element or molecule - you do not change its formulae. With this reaction, start by balancing the oxygen atoms: you can see that you have 3 of them on the right hand side. However, there are only 2 of them on the left so you need to find a multiple, that is 6. Once you added the factors, take a look at the carbon. You now have 3 on the left side so the factor will be 3 on the right. Finally, count how many Iron atoms you have left to complete the equation.
2Fe2O3 + 3C → 4Fe + 3 CO2