Room-temperature ferromagnetism was observed in (In0.95-xSnxFe0.05)203 (x = 0-0.09) films deposited by pulsed laser deposition. XRD results give a direct proof that both Sn and Fe ions have been incorporated into the In2O3 lattice. The carrier concentration in the films is obviously increased by the Sn-doping, while the ferromagnetic properties are rarely changed. We think that in our Fe-doped In2O3 films, the oxygen vacancy-related bound magnetic polaron model, rather than the carrier-mediated RKKY coupling, is the main mechanism for the observed ferromagnetism.