Each of the arguments required by the function, must be in the array supplied in the third argument to iterator_apply. You can use references too. Example:

<?php

function translate_to(string $target_language, Iterator $words, array $dictionaries) {
    
    $language = ucfirst($target_language);
    $dictionary = $dictionaries[$target_language] ?? 'not found';
    
    if ($dictionary === 'not found') {
        echo "Not found dictionary for {$language}\n";
        return;
    }
    
    echo "English words translated to {$language}\n";
    
    $not_found = [];
    
    iterator_apply($words, function($words, $dictionary, &$not_found){
    
        $english_word = $words->current();
    
        $translated_word = $dictionary[$english_word] ?? '';
    
        if ($translated_word !== '') {
            echo "{$english_word} translates to {$translated_word}\n";
        } else {
            $not_found[] = $english_word;
        }

        return true;
    
    }, array($words, $dictionary, &$not_found));
    
    echo "\nNot found words:\n" . implode("\n", $not_found) . "\n";
}

$dictionaries = [
    'nahuatl' => [
        'one' => 'Ze',
        'two' => 'Ome',
        'three' => 'Yei',
        'four' => 'Nahui',
    ],
];

$iterator = new \ArrayIterator(array('one', 'two', 'three', 'four', 'gasoil'));

translate_to('nahuatl', $iterator, $dictionaries);
?>

English words translated to Nahuatl
one translates to Ze
two translates to Ome
three translates to Yei
four translates to Nahui

Not found words:
gasoil

Be aware of the proper methods to iterate the specific Iterator you are consuming, as the implementation of the method could vary its behaviour.

For example, unlike the ArrayIterator, you can't iterate on a SplDoubleLinkedList with current() without using next() on every iteration (and then, only would iterate if you return true at the end of the callable. It is far easier then with LinkedLists use a while($it->valid()) { $it->current(); $it->next(); }

Let's see:

<?php

$ll = new \SplDoublyLinkedList();

$ll->push('ze');
$ll->push('ome');
$ll->push('yei');
$ll->push('nahui');

$ll->rewind();

$iterations_done = iterator_apply($ll, function(Iterator $it) {

    echo implode("\t=>", [
        $it->key(),
        $it->current(),
        ucfirst($it->current())
    ]),"\n";
    
    return true;

}, array($ll));

echo "Did iterate {$iterations_done} times \n";

$ll->rewind();

$iterations_done = iterator_apply($ll, function(Iterator $it) {

    echo implode("\t=>", [
        $it->key(),
        $it->current(),
        ucfirst($it->current())
    ]),"\n";
    
    $it->next();
    
    return true;

}, array($ll));

echo "Did iterate {$iterations_done} times \n";

$ll->setIteratorMode(SplDoublyLinkedList::IT_MODE_FIFO | SplDoublyLinkedList::IT_MODE_DELETE);

var_dump($ll->count());

foreach($ll as $key => $val) {
    echo "{$key}\t",ucfirst($val),"\n";
}

var_dump($ll->count());
?>

Output:

0    =>ze    =>Ze
0    =>ze    =>Ze
0    =>ze    =>Ze
0    =>ze    =>Ze
Did iterate 4 times 
0    =>ze    =>Ze
1    =>ome    =>Ome
2    =>yei    =>Yei
3    =>nahui    =>Nahui
Did iterate 4 times 
int(4)
0    Ze
0    Ome
0    Yei
0    Nahui
int(0)