engine compartment. the hole to the fender is where the resonator passed through. the resonator is pretty big so it makes more sense to use the volume in the fender ahead of the wheel.
Just a quick .02. A CRX ran afoul of this at the ARRC a few years ago. They had the intake in the fender well and were protested since the stock airbox is located under the hood. The protest was upheld and the car was disqualified.