I would give it 5% chance for this team to go to the next round. I am not basing it on the technical or tactical issues, player's talent levels or the coaching staff. The only reason they won't progress is because they are not mentally prepared for big tournaments.
We always lose in the WC even before showing up on the pitch. Iranian teams are not used to play against big names and big teams. They get easily intimidated. When they play friendlies, the fear is not a real factor, that's why they usually perform decently against others. As soon as it really counts, they get ultra defensive, no one shows for the ball, they park the bus and wait for a miracle to get something out of the game. That is in nutshell their demise.
They need proper personnel to take care of the psychological aspects of a game, but that is a long term plan. Look at Japan or South Koreans, they are by no means better than us in Asia but they are always better than us when it comes to WC or confederation's cup or any other major international tournament. Even if they lose, they play to their level and not like headless chickens, running around desperately defending or being scared of making mistakes.