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A freely suspended iron rod does not always point in the North-South direction due to the presence of local magnetic fields and variations in the Earth's magnetic field. Factors such as nearby magnetic materials, electrical currents, and geological formations can distort the magnetic field, causing the rod to align differently. Additionally, the rod's own magnetic properties and any residual magnetism can also influence its orientation. Therefore, while the Earth's magnetic field generally guides the direction, local anomalies can lead to deviations.

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