Iowa is an underrated team for sure, but I just can't ever watch Penn St and come away thinking I just watched a championship team. There's probably at least 8 teams I'd put favored over them, including Ohio St (by bowl time this team will be top 5 in the nation). I'm not going to say Penn St is a fraud because they've earned their ranking, they just don't seem like a great team to me. OU would be a 7 point favorite over them, USC a 8.5 point favorite, Texas a 4 point favorite, Florida a 7 point favorite etc. all on a neutral field.
I hope Iowa wins this game not only because I bet them, have them to get 8 wins this year (need to win out), but also just because I don't want to see Florida destroy PSU in the title game and have all the SEC guys run their mouths thinking they beat the second best team. USC/UF should be the title game.