"It's going to be a great atmosphere, and I think it will be a real blood-and-guts cup tie," Pearce told the City website. "Taking over 7,000 fans speaks for itself and even though it's not a long journey, I think that would have been the same wherever we played. That's a mark of our supporters and it will all add to the spice of the occasion.
"For me, the quarter finals is the stage of the competition where you finally feel you are getting that little bit closer. We have had to work hard to get to where we are - there were some tough ties - and being away again makes it a little bit more difficult. But, it's a game that we are buoyed up and ready for."
City suffered a disappointing exit at the same stage last season after being drawn at home to West Ham, who went on to reach the final and were beaten by Liverpool on penalties.
"We have got to use it as a positive, there was a lot of excitement generated by getting to the quarter finals, and now we are at the same stage again," added Pearce.
"That same excitement, from just the weight of numbers we are taking, is there again. I'm sure Blackburn are happy with the home draw, but it's all to play for and it should be a fantastic occasion."
City have slipped to fourth bottom in the Premiership after a run of four league defeats but Pearce is hoping the Blues can give themselves a boost on Sunday.
"We know from now until the end of the season that it's a tough run-in, that there's everything to play for," he said. "We know what a win on Sunday would do for the club and the lift it will give everybody, so we are really looking forward to getting stuck in."