What ability involves recognizing and manipulating phonemes in spoken words?

The ability being described is phonemic awareness, which specifically refers to the recognition and manipulation of phonemes, the smallest units of sound in spoken language. Phonemic awareness is crucial for developing reading and spelling skills because it enables individuals to identify and manipulate sounds in words, which lays the groundwork for understanding how letters correspond to sounds in written language. This skill allows learners to segment words into their individual phonemic components (e.g., identifying the sounds in the word "cat" as /k/, /æ/, and /t/), blend sounds together to form words, and manipulate phonemes to create new words through processes such as addition, deletion, or substitution of sounds.

While the other options relate to literacy development, they do not specifically encompass the recognition and manipulation of phonemes: print awareness refers to understanding the nature and function of written language; morpheme understanding involves the smallest units of meaning in a language; and onset and rime refer to specific parts of a syllable structure. Thus, phonemic awareness is the most accurate and relevant answer in this context.