The ifile will work on stored files in BIG-IP system.
So, "/Common/file1" is a LTM file on partition Common wich refers to a imported file on BIG-IP system instead of Linux structure files. With iFile you can securely work with files and iRules.
So, instead of you write files on Linux, import it to BIG-IP. Then, you can automate to import files same as you copy it to Linux by command line.
Here a best explanation on how it works:
https://techdocs.f5.com/kb/en-us/products/big-ip_ltm/manuals/product/tmos-implementations-13-0-0/9.html
Regards.