Final answer:
The diencephalon is the central part of the cerebrum that includes the thalamus and hypothalamus, responsible for sensory relay and autonomic nervous system regulation.
Step-by-step explanation:
The central part of the cerebrum, near the superior portion of the brain stem, that houses the thalamus and hypothalamus, and controls sensory neurons and the autonomic nervous system is known as the diencephalon. The thalamus is a major hub that relays sensory and motor signals, playing a key role in the regulation of consciousness, sleep, and alertness. The hypothalamus, situated inferior and slightly anterior to the thalamus, is an important component that regulates homeostasis and is the control center for the autonomic nervous system and the endocrine system through its influence on the anterior pituitary gland. It also connects with the limbic system, which is responsible for emotions and memory.