After VMware Tools is updated, the virtual machine is restarted unless the No Reboot parameter is specified.
To make sure that your i Phone is running the latest version of i OS, you'll need to connect it to your computer and download the update using i Tunes.
But don't worry: the process is pretty painless.
Here's a guide that explains exactly how to get the latest i OS software on your i Phone.
If i Tunes tells you that a more recent version of the application is available, download it.
Accept all prompts necessary to install the updated software.