What structure in the ear generates action potentials to communicate sound and balance information to the brain?

The inner ear is the correct structure that generates action potentials for transmitting sound and balance information to the brain. Within the inner ear, the cochlea and vestibular system play crucial roles. The cochlea is responsible for converting sound vibrations into electrical signals through hair cells, which then generate action potentials that are sent to the auditory nerve and ultimately to the brain for interpretation of sound.

Additionally, the vestibular apparatus, which includes structures like the semicircular canals, is involved in maintaining balance. It detects head movement and position, also generating signals that relay balance information to the brain. The inner ear thus integrates both auditory and vestibular functions, making it essential for processing sensory information related to sound and balance.