We examine the role of Fe(3+) and vacancies (V(O)) on the magnetism of Fe-doped CeO2 nanoparticles. Magnetic nanoparticles of Ce(100-x)Fe(x)O2 (x = 0, 0.26, 1.82, 2.64, 5.26, 6.91, and 7.22) were prepared by a co-precipitation method, and their structural, compositional and magnetic properties were investigated. The CeO2 nanoparticles had a mixed valance of Ce(4+) and Ce(3+) ions, and doping introduced Fe(3+) ions. The decrease in Ce(3+) and increase in Fe(3+) concentrations indicated the presence of more [Fe(3+) + V(O)(2-)] complexes with Fe loading in the particles. Charge neutralization, Fe(3+) + V(O)(2-) + 2Ce(4+) ↔ 2Ce(3+) + Fe(3+), identified the impact of V(O) on the magnetism, where our results suggest that the Fe-doped CeO2 nanoparticle magnetism is mediated by a majority of [Fe(3+) + V(O)(2-)]-Ce(3+) -[Fe(3+) + V(O)(2-)] complexes.