Example: Take this worksheet and PASS IT ON to the next student to your left. This is a group exercise and everyone needs to do 1 question in order for the assignment to be completed! Rotation of work isn't technically wrong, it just sounds awkward. Use Group Exercise instead.

Rotation is a concept within teaching but it can take different forms. For example, Station Rotation is when the students move between different stations and the work stays on the station. Activity Rotation is when the activity rotates but the students stay pit. There’s going to be a lot of different words for these and I’d suggest looking online to keep up with current terms as they change all the time and depend on the country.

Rotation work sounds like a very good name for that kind of activity. Yes, "pass it on" would be descriptive and appropriate. (To "pass it out" implies each student receives their own copy.)

pass it on Rotation work is descriptive of the exercise.

"pass it on" is correct I'm not entirely sure what rotation work means. It appears that the students are either sharing a single sheet or are each adding to that sheet. If they are adding to the sheet, it is simply a "group exercise".