{=IFERROR(INDEX(Sheet2!$A$2:$C$13,MATCH(1,(Sheet2!$A$2:$A$13=$A2)*(Sheet2!$C$2:$C$13=$D2),0),2),"FAIL")}

String formula = "AboveFormulaWithIterativeCell"  // (without {} and =)
String range = "XFC" + i;  // i is iterative row number
sheet.setArrayFormula(formula, CellRangeAddress.valueOf(range));

XSSFFormulaEvaluator.evaluateAllFormulaCells(wb);

String cellValue = c.getStringCellValue();

{=IF(TRUE,TRUE,FALSE)}