Final answer:
The phrase 'psychological hotbed' suggests the place is a hub for emotional and mental activity, rich with psychological significance.
Step-by-step explanation:
Fredericka's exclamation that the place is a psychological hotbed implies about the location that it is c) a hub for emotional and mental activity. This means that the location is rife with emotional energy and charged with mental significance, suggestive of a place that stirs up deep feelings, thoughts, or memories. This kind of space often invites engagement on a psychological level, which could mean that it's a site of significant events, personal or communal emotions, or historical importance that continues to affect the psyche of those who interact with it.