The highlighted structure is called Olfactory bulb and it is proportionally smaller in human compared to the similar structure in the sheep brain.
The neuronal component of the vertebrate forebrain responsible for olfaction, or the sense of smell, is known as the olfactory bulb (Latin: bulbus olfactorius). It delivers olfactory data to the amygdala, orbitofrontal cortex (OFC), and hippocampus for further processing, where it plays a role in emotion, memory, and learning. The main olfactory bulb and the accessory olfactory bulb are two separate components that make up the bulb.
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