Step 1: The procedure being described swaps out the recipient's circulating blood little by little and substitutes it with donor blood. The classic indication is a newborn with dangerously high bilirubin or ongoing haemolysis.
Step 2: To achieve a balanced replacement of red cells and plasma volume at the same time, the donor product must contain both. Fresh whole blood fits this requirement perfectly, since it carries the full set of cellular and liquid components.
Step 3: The alternatives fall short. Serum has no cells, EPP is not a complete blood product, and packed cells deliver only concentrated red cells without plasma. Only fresh whole blood meets every need of the exchange.
\[\boxed{\text{Whole blood}}\]