Permanent magnets are made of soft iron.

Explanation

**Step-by-Step Solution:**

1. **Understanding the Statement**: The question states that "Permanent magnets are made of soft iron." We need to determine if this statement is true or false.

2. **Identifying Materials for Permanent Magnets**: Permanent magnets are typically made from materials that can retain their magnetism over time. Common materials used for making permanent magnets include alloys of iron, cobalt, and nickel, rather than soft iron alone.

3. **Clarifying the Role of Soft Iron**: Soft iron is a material that is easily magnetized but does not retain magnetism well once the external magnetic field is removed. Therefore, it is not suitable for making permanent magnets.

4. **Correct Material for Permanent Magnets**: The correct material used to make permanent magnets is magnetite, which is an iron ore (Fe3O4) that has magnetic properties.

5. **Conclusion**: Since the statement claims that permanent magnets are made of soft iron, and we have established that this is incorrect, we conclude that the statement is false.

**Final Answer**: The statement "Permanent magnets are made of soft iron" is FALSE.

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