Final answer:
The activation-synthesis hypothesis of dreaming, developed by neuroscientist Alan Hobson and colleagues, posits that dreams explain physiological activity occurring during REM sleep, not unconscious desires or culturally universal symbols. Therefore, the correct option is C.
Step-by-step explanation:
The center of the activation-synthesis hypothesis of dreaming is based on the belief that dreams provide explanations for physiological activity, which corresponds to option (C). Alan Hobson, a neuroscientist, and his colleagues developed this hypothesis. Instead of dreams being meaningful narratives as proposed by Sigmund Freud, the activation-synthesis theory suggests that dreams are the brain's attempt to make sense of random neural activity during REM sleep. They are constructed as a virtual reality in our heads to help us navigate and interpret our world when we are awake. This hypothesis has evolved with new evidence, such as when Hobson (2009) introduced the idea of dreaming as a state of protoconsciousness. Furthermore, neurobiological evidence and research on lucid dreams have contributed to a broader understanding of dreaming.