Yes.
I don't think it really matters. Some people with acrylic parts prefer alcohol-free (has potasium iodide in it to make the iodine water soluable), but I'm not at all sure a few drops per liter of alcohol are going to matter. Povidone-iodine (betadine) will work a little faster, but that probably doesn't matter for our purposes. There's clear iodine if a touch of red would mess up your color scheme. Concentrations are usually 2% or 5%. Obviously, if you get the 2% you need to use more.
The really critical thing is to make sure whatever you use is completely dissolved in the coolant. You don't want any solids wearing out your pump. I don't believe this is an issue with any of the common drugstore preparations, though.