An aluminium can contains ferrous sulphate solution. It is observed that after a few days it develops holes in it. Explain the observation and write the chemical equation for it.

Al is above Fe in the activity series which means Al is a better reducing agent than Fe. Thus Al goes into solution and Fe^2+ comes out of solution.

2Al(s) + 3Fe^2+(aq) ==> 3Fe(s) + 2Al^3+(aq)
You should know why I multiplied by coefficients.
Al(s) + Fe^2+(aq) ==> Fe(s) + Al^3+(aq) is NOT balanced although it may look that way at first.