Which brain structure is involved in auditory processing, specifically distinguishing sound and its location?

The primary auditory cortex is the correct answer, as it is specifically designed for processing auditory information. Located in the temporal lobe, this area is crucial for interpreting sounds, including their pitch, volume, and location. Distinguishing sounds comes from the primary auditory cortex's ability to analyze various frequency patterns and integrate these with spatial information, allowing individuals to understand not just what they are hearing, but where the sounds are originating from.

The cerebellum primarily coordinates voluntary movements and balance rather than auditory processing. The thalamus, although it plays a role in relaying sensory information, does not directly process sounds; rather, it acts as a relay station conveying sensory signals to the appropriate areas of the cortex. The hippocampus is mainly associated with memory formation and spatial navigation, rather than the direct processing of auditory stimuli. Thus, the primary auditory cortex is the key structure for distinguishing sound and its precise location.