A 2-year-old boy from rural Uttar Pradesh presents with a 6-month history of poor weight gain and recurrent infections. On examination, he weighs 10 kg (expected 12–13 kg for age), height 85 cm, and appears wasted with visible ribs and sparse hair. His hair is dry, thin, and easily pluckable. Serum albumin is 2.8 g/dL (normal 3.5–5.0), and total lymphocyte count is 800/μL. He has no significant edema. Which form of protein-energy malnutrition (PEM) best describes this clinical presentation?