It is a physical change. Because the pencil mark is a physical stain on the paper, and the eraser is eradicating the stain with frictional motion and it adhesive power is applying a sticking action to the pencil mark to itself. read more
You can tell if a physical change is occurring by asking yourself if there is a change in color, shape, size, texture, volume, mass, and/ or density. These are physical properties and if they are changing they are physical changes. read more