Fe₂O₃ + 2Al → Al₂O₃ + 2Fe

The above reaction is an example of a 

Displacement Reaction

The correct answer is option 4. Displacement Reaction

Fe₂O₃ + 2Al → Al₂O₃ + 2Fe

The above reaction is an example of a displacement reaction.

Here, Aluminium is more reactive than Fe, therefore it will displace iron (Fe) from its oxide.

When more reactive metal displaces less reactive metal from its solution, it is termed as displacement reaction.