Step 1: Steroidogenesis in the adrenal cortex converts cholesterol to pregnenolone and then to progesterone, which is the common precursor for glucocorticoids such as cortisol.
Step 2: The steps that turn progesterone into glucocorticoids are carried out by cytochrome P450 enzymes that add hydroxyl (-OH) groups to the steroid ring. Progesterone is hydroxylated at C17 (by 17-alpha-hydroxylase), then at C21 (by 21-hydroxylase), and finally at C11 (by 11-beta-hydroxylase) to form cortisol.
Step 3: Since each enzymatic step adds a hydroxyl group, the core chemical reaction is hydroxylation. This is why the answer is hydroxylation.
Step 4: Methylation and carboxylation do not occur in this pathway, so both are incorrect.