Answer: Encoding
Explanation:
Hippocampus is the part situated in limbic system that helps in learning, motivation, regulation etc of thought and information in memory. It transfers the information from short term memory to long term memory.
According to the question, if hippocampus faces any damage then it loses its ability to encode information and thoughts from memory. It cannot create new memories as well as finds difficulty in retaining past memories.
Other options are incorrect because retrieval, transferring and storage are not the major roles played by hippocampus. Thus, the correct option is encoding.
