two questions
Iron
The classic treatment for iron is to add an oxidant such as chlorine, potasium permaganate, or ozone, which will oxidize the iron to a rust which is then removed by a filter containing granular media such as sand, antracite, greensand. (if the iron content is low, less than ~2 mg/liter you can sequester the iron using a polyphosphate)
The filter is typically sized at 2-5 gpm per sq ft (75 to 150 liter per min per sq meter). So the diameter of the tanks is proportional to quanity of water out of the well.
In either case this will require equipment that requires maintenance during well operatation. The maintenance includes replacing the oxidant when it runs out and, the filter(s) will need backwashing, the filter manufacterer can provide automatic controls to do this. If you have two or more filter vessels you can use the water from one to backwash the other but with one vessel it requires stored water and additional pump. Getting the oxidant dose correct requires trial and error.
A simple system that may work, the device drops a calcium hypochlorite tablets down the well for every 30 gallon (100 liter) produced. The iron is oxidized in the well and drops to the bottom of the well. But check local codes to see if this is allowed. USA Bluebook pg123
Having iron in the water is not unheathly but it will turn everything brown as the iron comes out of solution and promotes the growth of iron bacteria.
safe to drink
your primary concern is bacteria. A well constructed using good seals and drawing from a aquifer below a confining layer will be safe to drink if it has not been contaminated. Note wells are easy to containminate and hard to cleanup. Have the water tested for coliforms on a least a yearly basis if you wish to drink it.