The pods are indeed seed pods, but I have yet to see a new plant grow from one of the seeds. The seeds don't seem to be viable, but maybe they weren't pollinated. In any event, it's much easier to propagate by taking off a section of the rhyzomes beneath the soil and planting them just below the surface somewhere else in your garden. If you were able to get a plant growing from the seed, it very well might be hybridized from pollen of another color of iris blooming at the same time.