The gas-phase vibrational spectrum of the isolated iodide-water cluster ion (I-center dot H2O), first reported in 1996, presents one of the most difficult, long-standing spectroscopic puzzles involving ion microhydration. Although the spectra of the smaller halides are well described in the context of an asymmetrical ground-state structure in which only one OH group is hydrogen-bonded to the ion, the I-center dot H2O spectrum displays multiplet structures with partially resolved rotational patterns that are additionally influenced by quantum nuclear spin statistics. In this study, this complex behavior is unraveled with a combination of experimental methods, including ion preparation in a temperature-controlled ion trap and spectral simplification through applications of tag-free, two-color IR-IR double-resonance spectroscopy. Analysis of the double-resonance spectra reveals a vibrational ground-state tunneling splitting of about 20 cm(-1), which is on the same order as the spacing between the peaks that comprise the multiplet structure. These findings are further supported by the results obtained from a fully coupled, six-dimensional calculation of the vibrational spectrum. The underlying level structure can then be understood as a consequence of experimentally measurable, vibrational mode-dependent tunneling splittings (which, in the case of the ground vibrational state, is comparable to the rotational energy spacing between levels with K-a = 0 and 1), as well as Fermi resonance interactions. The latter include the hydrogen-bonded OH stretches and combination bands that involve the HOH bend overtones and soft-mode excitations of frustrated translation and rotation displacements of the water molecule relative to the ion. These anharmonic couplings yield closely spaced bands that are activated in the IR by borrowing intensity from the OH stretch fundamentals.