Final answer:
Stress appraisal stimulates the (C) amygdala, which then communicates with the hypothalamus to generate a stress response including the fight-or-flight reaction and the release of stress hormones.
Step-by-step explanation:
The amygdala is the part of the brain responsible for stress appraisal which in turn stimulates the hypothalamus. Stress responses are generated when the amygdala communicates with the hypothalamus via the medial forebrain bundle, leading to the activation of the sympathetic fight-or-flight response, as well as the release of stress hormones controlled by the endocrine system. The hypothalamus functions as the master control center for issues related to homeostasis by managing both the autonomic and endocrine systems.
Therefore, the correct answer to the question is (C) Amygdala, as it is the region of the limbic lobe that is responsible for generating stress responses via the hypothalamus.