If a token is exiled this way, it will cease to exist and won't return to the battlefield.

If a waterbend cost is part of the total cost to cast a spell or activate an ability, you may tap an untapped artifact or creature you control rather than pay one generic mana in that total cost any number of times up to a maximum of the amount of generic mana in the waterbend component of that total cost.

You can tap any untapped creature or artifact you control to pay a waterbend cost, even one you haven't controlled continuously since the beginning of your most recent turn.

Auras attached to the exiled permanent will be put into their owners' graveyards. Any Equipment will become unattached and remain on the battlefield. Any counters on the exiled permanent will cease to exist. When the card returns to the battlefield, it will be a new object with no connection to the card that was exiled.

If an Aura is exiled this way, its owner chooses what it will enchant as it returns to the battlefield. An Aura put onto the battlefield this way doesn't target anything (so it could be attached to a permanent with shroud, for example), but the Aura's enchant ability restricts what it can be attached to. If the Aura can't legally be attached to anything, it remains in exile for the rest of the game.

Even if the cost of the spell or ability that waterbend is part of increases or decreases, you still may only tap artifacts or creatures to pay for costs up to the amount of the generic mana in the waterbend cost.

If an artifact or creature you control has a mana ability with {T} in the cost, activating that ability while casting a spell or activating an ability with waterbend will result in the artifact or creature being tapped before you pay the spell's costs. You won't be able to tap it again for waterbend. Similarly, if you sacrifice an artifact or creature to activate a mana ability to pay a cost with waterbend, that artifact or creature won't be on the battlefield when you pay the spell's costs, so you won't be able to tap it for waterbend.

If Aang's Iceberg leaves the battlefield before its triggered ability resolves, including if it is sacrificed by its activated ability, the target permanent won't be exiled.

The third ability of Aang's Iceberg allows you to sacrifice Aang's Iceberg as the ability resolves, not as a cost to activate the ability. If Aang's Iceberg leaves the battlefield before the activated ability resolves, you will be unable to sacrifice Aang's Iceberg and will not scry, even if Aang's Iceberg was sacrificed via a different ability while its activated ability was on the stack.

"Waterbend [cost]" means "Pay [cost]. For each generic mana in that cost, you may tap an untapped artifact or creature you control rather than pay that mana."