Step 1: Begin by understanding the question, which asks for the branch of biology that specifically studies fungi.
Step 2: Review the definitions of the terms provided in the options: Entomology (study of insects), Virology (study of viruses), Mycology (study of fungi), and Phycology (study of algae).
Step 3: Focus on the term 'Mycology' and recognize that it is derived from the Greek word 'mykes,' meaning fungus, and '-logy,' meaning study. This confirms its relevance to fungi.
Step 4: Compare 'Mycology' with the other options to ensure no overlap or confusion. For example, fungi are distinct from insects, viruses, and algae, which are studied in Entomology, Virology, and Phycology, respectively.
Step 5: Conclude that the correct answer is 'Mycology,' as it directly pertains to the study of fungi.