1) Is there any way to know if these hypopneas are central or obstructive, since the report does not tell about it? The doctor was fairly confident that these are obstructive in nature , since I don't have underlying conditions for a central.
One would have to look at the breath by breath flow charts to see what is happening. In my experience looking at results on SleepyHead a hypopnea can be either central or obstructive. If you are getting a waxing and waning of breathing depth in a smooth cycle that does end in a full apnea, then that would suggest a central event. And I would think during the sleep test they would monitor not only the flow but your effort to breathe. Central apnea is basically a reduction in effort to breathe. Perhaps the doctor has looked at that when making the opinion.
They should be able to tell during the titration test though. If increasing pressure does not resolve the hypopnea then that suggests they are central in nature.
2) What to expect during a CPAP titration test , since I am quite apprehensive about it?
If you had an in lab sleep test it should be very similar to that. They will just increase the pressure over the night and find out what is required to resolve your hypopnea. They will also be checking for any indication that increasing pressure causes central apnea events.
3) What kind of CPAP device will be best suited for my condition ?
If pressure resolves your hypopnea, then the two obvious choices would be a fixed pressure CPAP, or an APAP. I push as much as you can for an APAP that saves detailed data to the SD card. You don't want to get stuck with a fixed pressure "brick" that gives you no data to monitory your results. I would push for the ResMed AirSense 10 AutoSet.
Now if the pressure does not resolve your hypopnea because it is central in nature, then an APAP may not work that well. The other choices would be a BiLevel machine or ASV. Probably a bit premature to be considering them at this point though.