A process moves through Ready, Running, Blocked and Terminated states depending on what it is doing. Ready means it's waiting only for CPU time; Running means the CPU is executing it right now; Blocked means it's waiting on something other than the CPU, like an I/O device; Terminated means it has finished.
Once a process asks the I/O subsystem to read or write data, the CPU can't usefully continue running it since the result of the I/O isn't available yet, so the OS sets it aside and gives the CPU to another process. That "set aside, waiting on I/O" condition is precisely the Blocked state.
So the correct answer is Blocked.