Unfortunately, the color doesn't animate with UIView animations.
The answers to this question give some good workarounds without using Core Animation.
If you don't mind using a CATextLayer instead of a UILabel, then the color (and the scaling in your example) can be animated like this:
#import <QuartzCore/QuartzCore.h>
//Also need to add QuartzCore framework to project (as well as the import).
//
-(void)animateTextLayer {
CGFloat animationDuration = 5;
CATextLayer *textLayer = [CATextLayer layer];
[textLayer setString:@"Hello World"];
[textLayer setForegroundColor:[UIColor purpleColor].CGColor];
[textLayer setFontSize:30];
[textLayer setFrame:CGRectMake(20, 200, 300, 40)];
[[self.view layer] addSublayer:textLayer];
CABasicAnimation *colorAnimation = [CABasicAnimation
animationWithKeyPath:@"foregroundColor"];
colorAnimation.duration = animationDuration;
colorAnimation.fillMode = kCAFillModeForwards;
colorAnimation.removedOnCompletion = NO;
colorAnimation.fromValue = (id)[UIColor purpleColor].CGColor;
colorAnimation.toValue = (id)[UIColor greenColor].CGColor;
colorAnimation.timingFunction = [CAMediaTimingFunction
functionWithName:kCAMediaTimingFunctionLinear];
CAKeyframeAnimation *scaleAnimation = [CAKeyframeAnimation
animationWithKeyPath:@"transform"];
NSArray *scaleValues = [NSArray arrayWithObjects:
[NSValue valueWithCATransform3D:CATransform3DScale(textLayer.transform, 1, 1, 1)],
[NSValue valueWithCATransform3D:CATransform3DScale(textLayer.transform, 1.5, 1.5, 1)],
[NSValue valueWithCATransform3D:CATransform3DScale(textLayer.transform, 0.5, 0.5, 1)], nil];
[scaleAnimation setValues:scaleValues];
scaleAnimation.fillMode = kCAFillModeForwards;
scaleAnimation.removedOnCompletion = NO;
CAAnimationGroup *animationGroup = [CAAnimationGroup animation];
animationGroup.duration = animationDuration;
animationGroup.timingFunction = [CAMediaTimingFunction
functionWithName:kCAMediaTimingFunctionLinear];
animationGroup.fillMode = kCAFillModeForwards;
animationGroup.removedOnCompletion = NO;
animationGroup.animations =
[NSArray arrayWithObjects:colorAnimation, scaleAnimation, nil];
[textLayer addAnimation:animationGroup forKey:@"animateColorAndScale"];
}