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Let the ship and the iron ball have the same mass. We know,

This equation means that Density is inversely proportional to Volume of the body.

Thus, when the volume of the ship is more (because it is hollow) the density will be less than the density of an iron ball (which is not or less hollow).

an iron ball is compact so its mass is more as compared to an iron ship which is almost hollow from inside.so its mass it less.