Step 1: Recall aerobic biological treatment.
In aerobic treatment, microorganisms utilize dissolved oxygen to decompose organic matter present in sewage.
Step 2: Identify the governing process.
The decomposition occurs through biological oxidation of organic pollutants.
Hence,
\[
\boxed{\text{Oxidation}}
\]
is the correct answer.
Therefore,
\[
\boxed{(D)}
\]
is the correct answer.