Final answer:
Semantics is the term that refers to the process of understanding meaning from morphemes and words.
Step-by-step explanation:
The term that refers to the process by which we derive meaning from morphemes and words is semantics.
Semantics is part of a language's grammar and it involves understanding the meaning of individual words and how they are used in sentences.
For example, when we hear the word "dog," we understand that it refers to a four-legged animal that is often kept as a pet.