The oxidising agent would be IO3-, not iodine. The oxidation state of iodine here is +5 and is reduced to 0 in I2, making it an oxidising agent. I- is a reducing agent as it changes from -1 to 0.
In this reaction iodine in each separate component is both oxidised and reduced you need to specify, which is why the mark scheme accepts "the iodine in iodate ions" but not just "iodine"