What type of chemical reaction where an element reacts with a compound and takes the place of another element in that compound?

The correct answer is: Single Displacement

The word displace means to push out. A more reactive element can displace a less reactive element out of its compound during a chemical reaction, this reaction is termed as displacement reaction.
Single displacement reaction can be termed as when only one displacements take place in a reaction.
The generic equation for a single replacement reaction:
A + BC  AC + B
Here B is replaced by A, only one displacement.