Final answer:
Working memory (B) is tied to short-term memory and is essential for processing and manipulating information, such as decision-making and language comprehension. It is localized to the prefrontal lobe and is distinct from episodic memory, which involves recollection of personal experiences.
Step-by-step explanation:
The concept closely linked to short-term memory, which allows individuals to manipulate and-process information when making decisions, solving problems, and understanding language, is Working memory (B). This cognitive system is vital for a range of mental tasks and is considered active or short-term memory that is localized to the prefrontal lobe. The famous case of patient HM greatly contributed to our understanding of working memory. HM could form new short-term memories despite damage to the medial temporal lobe, suggesting the hippocampus and adjacent structures are involved in transferring short-term memories from the prefrontal lobe to long-term storage in the temporal lobe.
Working memory differs from episodic memory, which concerns personal experiences, and is stored differently within the brain. Through Baddeley and Hitch's model of working memory, we understand that short-term memory can take different forms, including visual-spatial and auditory information, overseen by a central executive that manages data transfer to long-term memory.