Step 1: Ask what physically happens to the marrow in leukaemia. The marrow space gets packed with leukaemic blasts, leaving no room for the normal red cell factory. That mechanical replacement is the key.
Step 2: Name the anaemia produced by marrow replacement. When a space-occupying process evicts normal haematopoiesis, the resulting anaemia is termed myelophthisic. Leukaemia is a classic example because its cells overrun the marrow.
Step 3: Look for the confirming blood smear clue. Marrow infiltration forces immature erythroid and myeloid precursors into circulation, giving a leukoerythroblastic picture. Other marrow-replacing conditions such as metastatic carcinoma and myelofibrosis behave the same way.
Step 4: Eliminate the nutritional options. Iron deficiency follows blood or iron loss and megaloblastic anaemia follows B12 or folate lack, neither of which describes marrow takeover by leukaemia. So the answer is myelophthisic type.
\[\boxed{\text{Myelophthisic type}}\]