If you have iron in the water, it's either in solution or in suspension. In solution means it's "dissolved" (for lack of a better term) into the water. You can't see it at all. If it's in suspension, it has come out of solution and is making little particles that can be seen either as stains on the pool, or as a green/brown tint in the water.
Raising FC will cause iron that is normally in solution to precipitate out into suspension, making it show.
The good news is that while it is in suspension it can be filtered out. (While in solution the only way to get rid of it is to change out the water.) So if you put polyfil in your skimmer as Pat mentioned above, it'll grab the iron particles in suspension and you can rinse off the polyfil and get rid of it.
Once the FC falls lower it might go back into solution. This is good as it will make the water lose the green tint, but it's bad in that if you have to raise the FC again later, it'll go green again as the iron comes back into suspension. So if it were me, I'd keep the FC higher and use the polyfil to get rid of as much iron as I could with the FC elevated.