Option (d) displacement reaction is correct. In the given reaction Fe₂O₃ + 2Al → Al₂O₃ + 2Fe, aluminum (Al) displaces iron (Fe) from iron oxide (Fe₂O₃). Aluminum, being more reactive than iron, takes the place of iron in the oxide compound, forming aluminum oxide (Al₂O₃) and releasing iron as a product. This is a characteristic of displacement reactions where a more reactive element displaces a less reactive element from its compound. The reaction is also a redox reaction as Fe₂O₃ loses oxygen (is reduced) while Al gains oxygen (is oxidised), similar to the example CuO + H₂ → Cu + H₂O mentioned in the context where copper oxide loses oxygen and is reduced.