An ISO file is a CD or DVD image file. In order to attach an ISO file to the local file system, you have to mount it with a loop device. A loop device is used to make a regular file look like a block device.
The mount command is used to mount the device to the local file system.

mount -o loop,unhide,ro -t iso9660  
mount -o loop,unhide,ro -t udf

The “-o” option specifies extra parameters

loop use a loop device
unhide show hidden files
ro mount filesystem as readonly

The “-t” option specifies the filessytem to mount.

iso9660 CD-ROM filesystem
udf DVD Filesystem

The source parameters is the ISO.file. The target is the mount stub where the ISO file will be attached to the local filesystem.

References:
Anatomy of the Linux file system

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