I would approach this problem in a slightly different way. You're basically looking for the row that has no other iterations greater than it. There are at least 3 ways I can think of to do this:
SELECT
T1.iteration AS maxiteration,
T1.column
FROM
Table T1
WHERE
T1.id = 223652 AND
NOT EXISTS
(
SELECT *
FROM Table T2
WHERE
T2.id = 223652 AND
T2.iteration > T1.iteration
)
Or...
SELECT
T1.iteration AS maxiteration,
T1.column
FROM
Table T1
LEFT OUTER JOIN Table T2 ON
T2.id = T1.id AND
T2.iteration > T1.iteration
WHERE
T1.id = 223652 AND
T2.id IS NULL
Or...
SELECT
T1.iteration AS maxiteration,
T1.column
FROM
Table T1
INNER JOIN (SELECT id, MAX(iteration) AS maxiteration FROM Table T2 GROUP BY id) SQ ON
SQ.id = T1.id AND
SQ.maxiteration = T1.iteration
WHERE
T1.id = 223652
EDIT: I didn't see the ORA error the first time reading the question and it wasn't tagged as Oracle specific. I think that there may be some differences in the syntax and use of aliases in Oracle, so you may need to tweak some of the above queries.
The Oracle error is telling you that it doesn't know what maxiteration is, because the column alias isn't available yet inside the subquery. You need to refer to it by the table alias and column name instead of the column alias I believe.