Step 1: Casal's necklace is a band of hyperpigmented, scaly dermatitis around the neck. It is a classic sign of pellagra, the disease of niacin (vitamin B3) deficiency.
Step 2: Pellagra results from deficiency of niacin and its precursor tryptophan. It produces the 4 Ds: dermatitis (in sun-exposed areas, including the neck collar that forms Casal's necklace), diarrhoea, dementia and, if untreated, death.
Step 3: Why the others are wrong. Vitamin A deficiency causes night blindness and xerophthalmia. Iron deficiency causes microcytic anaemia and koilonychia. Vitamin B12 deficiency causes megaloblastic anaemia and subacute combined degeneration.
Ref: DM Vasudevan, Textbook of Biochemistry, 6th edition, pg 395.