Step 1: Read the reaction.
An alkyl halide reacts with aqueous KOH to give an alcohol. We must name the type of this reaction.
Step 2: Spot the leaving group.
In the alkyl halide the halogen atom is the leaving group. The carbon holding it is a bit positive, so it can be attacked.
Step 3: Spot the nucleophile.
Aqueous KOH gives the hydroxide ion $\text{OH}^-$. This ion has a lone pair and a negative charge, so it is a nucleophile that likes positive carbon.
Step 4: Watch the swap.
The hydroxide attacks the carbon and pushes out the halide. So $\text{OH}^-$ takes the place of the halogen, giving an alcohol.
Step 5: Name the reaction.
Because one group replaces another and the attacker is a nucleophile, this is a nucleophilic substitution reaction.
Step 6: Rule out the others.
There is no double bond here, so it is not an addition. The attacker is not an electrophile, so it is not electrophilic. So the answer is nucleophilic substitution.\[ \boxed{\text{Nucleophilic substitution}} \]