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Rods and cones, the light-sensitive cells of the eye, are located in the retina. The retina is a thin layer of tissue situated at the back of the eye that plays a vital role in vision. It contains millions of photoreceptor cells, where rods are responsible for vision in low light conditions and peripheral vision, while cones are responsible for color vision and visual acuity in bright light. This arrangement allows the retina to convert light into neural signals that are then processed by the brain to create visual images.

The iris and cornea serve different functions; the iris controls the size of the pupil and thus the amount of light entering the eye, while the cornea is the clear front layer that helps focus light onto the retina. The lens, situated behind the iris and cornea, further refines this light focus on the retina but does not contain any photoreceptor cells. Therefore, the correct answer aligns with the specific function of the retina in housing the critical components essential for the initial stages of vision.