The drawing will not iterate unless you open it and check it back in. The model changes will automatically propagate to the drawing when opened.
Download the drawing and the assembly/part will come with it. I do not download files to my workspace explicitly. I use File-Open in Creo, enter the drawing name and let Creo download the files it needs for the drawing. I may have these reversed, but my reasoning is: Open the file in Creo will download the latest version of all components. Download the file and by default, you get the As-Saved of the components. That can be a difference and may lead to errors. Always be sure you have the proper versions of the parts you are working on.
Revision is the assigned alpha/numeral.
Iteration is the automatically generated number after the revision.
Version is the Revision.Iteration.