Well, first you need to understand the recursive formula, and how we derived the iterative one from it.
The recursive formula is:
f(n) = f(n-1) + f(n-2)
f(0) = f(1) = 1
(f(n-1)
for one step, f(n-2)
for two steps, and the total numbers is the number of ways to use one of these options - thus the summation).
If you look carefully - this is also a well known series - the fibonacci numbers, and the solution is simply calculating each number buttom-up instead of re-calculating the recursion over and over again, resulting in much more efficient solution.
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