Correct answer: Metaplasia.
Step 1: Cigarette smoke chronically irritates the bronchial lining. The normal pseudostratified ciliated columnar respiratory epithelium is replaced by a tougher stratified squamous epithelium. This swap of one adult cell type for another adult cell type is squamous metaplasia.
Step 2: Metaplasia is reversible: stopping smoking can allow the normal epithelium to return. It is the classic early change in a smoker's airway and frequently coexists with squamous cell lung cancers.
Step 3: Why not the others. Hyperplasia is an increase in cell number, not a change in cell type. Dysplasia is disordered, atypical growth (a step toward malignancy), not seen in simple smoker's metaplasia. CIN3 is a cervical grading term and does not apply to bronchial epithelium.
Note on the recall key: the crowd-recalled key marked Dysplasia (B), but the stem and the cited reference describe replacement of one epithelium by another, which is metaplasia. The medically correct answer is Metaplasia.
Ref: Robbins Basic Pathology, 9th edition.