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You can run pretty good when on fire (not 100% but still efficient to run away). If you are able to land 2 arrows on the guy you are only looking at a fair fight at best (seeing has how stone sword does 1 damage on full iron).It's not that hard...
If you have a bow and 1/2 arrows, flint and steel it's pretty easy.
1) Make them come towards you
2) shoot 2 arrows at them, most iron people will still be confident.
3) Light them with Flint and steel
4) Get 2/3 hits on them, if they're not dead you've got them really low and this is when they'll try to run.
5) They're on fire lolnope.
If you don't have any of those charge in there and fight. If you're skilled, you might actually win. (Like I normally do)
;(What do you do if you have a leather chestplate and stone sword, and your enemy has all iron and a diamond sword? You run. First, if you have spotted them and they haven't spotted you, crouch and slowly walk away. The person may not spot you. How about if you have two very strong opponents teamed? You run again. Do exactly what you did with the one opponent. If you see three or more like that, hide in a corner and cry.