Final answer:
Phonological processing occurs in the temporal lobe, which is involved in auditory processing and language comprehension.
Step-by-step explanation:
Phonological Processing of phoneme analysis and phoneme-grapheme association occur in the temporal portion of the brain. The temporal lobe is primarily involved in processing and interpreting sounds and is associated with hearing, memory, emotion, and some aspects of language. Areas within the temporal lobe, such as Wernicke's area, play a crucial role in speech comprehension, which aligns with phonological processing tasks like phoneme analysis and phoneme-grapheme associations.