We analyze the experimental structure to identify the appropriate statistical design.
Step 1: \color{redIdentify the Experimental Units
The experimental units are the arms of the persons.
Step 2: \color{redIdentify the Nuisance Variable
The variation between different people (skin type, age, health) is a major source of noise that could mask the difference between the creams.
Step 3: \color{redAnalyze the Grouping (Blocking)
By applying both treatments (Cream A and Cream B) to the same person, we are using the "person" as a block. This allows us to compare the effects of the creams within each individual, effectively controlling for the person-to-person variation.
Step 4: \color{redConclusion
A design where experimental units are grouped into homogeneous sets (blocks) and treatments are assigned randomly within those blocks is a Randomized Block Design (RBD). In this specific case, it is often called a "matched pairs" design, which is the simplest form of RBD.
Final Answer: (2).