Final answer:
The theory that suggests brain activity in REM sleep helps to build and preserve neural pathways during sleep, thereby supporting the physiological function of sleep and dreaming, is the physiological function theory. This is aligned with Alan Hobson's activation-synthesis theory, which describes dreaming as a constructive, virtual reality aiding wakefulness.
Step-by-step explanation:
The finding that brain activity associated with REM sleep may help build and preserve neural pathways during sleep supports the physiological function theory of dreaming. This theory posits that dreaming serves a physiological purpose by aiding the brain in the consolidation of learning and memory processes.
The activation-synthesis theory, developed by neuroscientist Alan Hobson, aligns with this idea by suggesting that dreaming represents a state of protoconsciousness, constructing a virtual reality that might assist us during wakefulness. Researchers even utilize fMRI to detect and classify visual images that occur during dreaming which clarifies the correlation between brain activity and dreaming further.
Additionally, phenomena like the REM rebound reflect homeostatic regulation, indicating that REM sleep and associated dreaming have a restorative function. This biological perspective contrasts with Freud's wish-fulfillment theory and aligns more closely with hypotheses framed by evolutionary psychology, although they emphasize the adaptive function of sleep more broadly rather than dreaming specifically.