Room temperature ferromagnetism was observed in n-type Fe-doped In2O3 thin films deposited on c-cut sapphire substrates by pulsed laser deposition. Structure, magnetism, composition, and transport studies indicated that Fe occupied the In sites of the In2O3 lattice rather than formed any metallic Fe or other magnetic impurity phases. Magnetic moments of films were proved to be intrinsic and showed to have a strong dependence on the carrier densities which depended on the Fe concentration and its valance state as well as oxygen pressure.