Final answer:
Cognitive psychology is the branch of psychology that is grounded in functionalist insights and concerned with how mental processes influence perceptions and interactions with the environment.
Step-by-step explanation:
The branch of psychology that relies on functionalist insights in discussing how events interact and result in specific perceptions is Cognitive psychology. This field focuses on the study of human thinking and mental processes. Functionalism, a concept associated with thinkers such as William James, John Dewey, and Charles Sanders Peirce, views mental activities as adaptations helping an organism fit into its environment. The functionalist perspective in psychology emphasizes the role of mental processes in how they help an individual interact with their surroundings, which aligns with the principles of cognitive psychology. The branch of psychology that relies on functionalist insights in discussing how events interact and result in specific perceptions is cognitive psychology. Unlike Freudian psychology, which focuses on the unconscious mind and internal conflicts, or biological psychology, which explores the biological basis of behavior, cognitive psychology examines mental processes such as thinking, memory, problem-solving, and perception. It draws on functionalist principles by investigating how these cognitive processes function and interact to shape our perceptions of the world. Additionally, cognitive psychology is distinct from Gestalt psychology, which emphasizes the holistic nature of mental experiences, by delving into the specific mechanisms and functions underlying cognitive activities.