How does the team know what to work upon during the iteration?
Team participates in iteration planning during which lead/SM decides who should work on what
Team participates in iteration planning during which the team discusses with the PO & finalizes who should work on what
SM has regular interaction with PO, he/she guides the team on the tasks to be taken up
Iteration plan to be shared by PO beforehand, any spill over from last iteration is taken up by default