Final answer:
The hypothalamus is the part of the diencephalon that produces and releases releasing and inhibiting hormones.
Step-by-step explanation:
The part of the diencephalon that produces and releases releasing and inhibiting hormones is the hypothalamus. The hypothalamus is intricately involved with the function of the pituitary gland, also known as the hypophysis, which is connected to the hypothalamus by the infundibulum. It produces hormones that regulate the anterior pituitary by secreting releasing and inhibiting hormones that reach the pituitary through the hypophyseal portal system. The posterior pituitary is an extension of the hypothalamus and releases hormones like antidiuretic hormone (ADH) and oxytocin that are produced by the hypothalamus.