Biochemical treatment of sewage effluents, especially in secondary treatment stages like the activated sludge process, primarily involves the oxidation of organic matter by microorganisms. These microbes use dissolved oxygen to break down biodegradable organic pollutants into stable, non-polluting end-products such as carbon dioxide, water, and biomass.
Therefore, the process is predominantly one of oxidation, not dehydration or reduction.
Hence, the correct answer is (1) oxidation.