Grand Theft Auto IV cannot run on a PSP. The game requires an x86 processor, at least 1.5 GB of RAM, and a Shader Model 3.0 compatible GPU. The PSP uses a MIPS processor at 333 MHz with only 64 MB of RAM and has no shader support whatsoever.
The 6 GB ISO file is designed for PC (Windows) or Xbox 360 / PlayStation 3 — each platform uses a different ISO format.
-norestrictions -nomemrestrict -percentvidmem 100 -availablevidmem 4.0 (adjust the last value based on your actual VRAM).Only install from an owned physical disc or a purchased digital license (Steam, GOG, Epic, Rockstar Store). Downloading ISOs constitutes piracy and carries malware risks.
For portable Grand Theft Auto experiences, consider GTA: Chinatown Wars (DS/PSP/iOS/Android) or GTA: Liberty City Stories / Vice City Stories (PSP/PS2/PS3/PS Vita) — these are native ports designed for handheld hardware.