Othello and the others learn the truth about Iago from Emilia when she
tells them that Desdemona never gave her handkerchief to Cassio. Emilia reveals
that, in fact, she herself found Desdemona's handkerchief and gave it to Iago,
not knowing what he was going to do with it. She says,
No, alas, I found it
And I did give ’t my husband.
At this point, it is obvious that Iago planted the handkerchief to make it
look like Cassio and Desdemona were having an affair. Although Iago calls his
wife a liar and stabs her, it is too late. As Emilia is dying, she confirms to
Othello that Desdemona was faithful to him:
Moor, she was chaste, she loved thee, cruel Moor.
So come my soul to bliss, as I speak true.
Othello is so horrified at what Iago has done that, remembering a fable that a devil has cloven feet, he looks down at Iago's feet to see if Iago is, indeed, a demon. Of course, as Othello says, he knows Iago is not really a devil, because he knows he can kill him. Othello states, right before he stabs Iago,
I look down towards his feet, but that’s a fable.
If that thou be’st a devil, I cannot kill thee.
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